RAC takes controlling stake in Mauritius-based Astoria
RAC has upped its stake in the investment firm from 29.4% to 78.45%, and is now obliged to make a takeover bid for the rest of the shares
01 November 2019 - 11:52
bykarl gernetzky
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
RECM and Calibre CEO Piet Viljoen. Picture: HETTY ZANTMAN
(RAC), the investment house headed by asset managers Piet Viljoen and Jan van Niekerk, has taken a controlling stake in Mauritius-based investment firm Astoria.
The company has upped its stake from 29.4% to 78.45%, and is now obliged to make a takeover offer of the rest of the shares.
RAC paid R144.7m for its increased stake, which, at R2.40 per share, represents a 4.3% premium to Astoria’s share price at Thursday’s close.
Explaining the rationale of the transaction, RAC said: “With a larger shareholding, RAC will be able to provide its capital allocation framework to the Astoria board of directors for implementation.”
RAC has previously tried to take over Astoria, making an offer of R13.50 a share in May 2018, but that deal did not proceed.
Astoria’s share price was unchanged on Thursday morning, having lost 81.75% so far in 2019. RAC was up 1.49% to R15 having lost 14.29% in the year to date.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
RAC takes controlling stake in Mauritius-based Astoria
RAC has upped its stake in the investment firm from 29.4% to 78.45%, and is now obliged to make a takeover bid for the rest of the shares
(RAC), the investment house headed by asset managers Piet Viljoen and Jan van Niekerk, has taken a controlling stake in Mauritius-based investment firm Astoria.
The company has upped its stake from 29.4% to 78.45%, and is now obliged to make a takeover offer of the rest of the shares.
RAC paid R144.7m for its increased stake, which, at R2.40 per share, represents a 4.3% premium to Astoria’s share price at Thursday’s close.
Explaining the rationale of the transaction, RAC said: “With a larger shareholding, RAC will be able to provide its capital allocation framework to the Astoria board of directors for implementation.”
RAC has previously tried to take over Astoria, making an offer of R13.50 a share in May 2018, but that deal did not proceed.
Astoria’s share price was unchanged on Thursday morning, having lost 81.75% so far in 2019. RAC was up 1.49% to R15 having lost 14.29% in the year to date.
gernetzkyk@businesslive.co.za
Helen Zille calls for DA to dump race analysis
DA leadership race to replace Mmusi Maimane is in full swing
Anchor Group: after the storm, it has some wind in its sails
Mauritius, here we come
Pepkor faces toughest trading conditions in its history
Companies in this Story
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
RAC ups Goldrush bet
MARC HASENFUSS: Gold mine in Goldrush
MARC HASENFUSS: Capitec looms large in PSG’s life
Try these forgotten JSE counters
Small-cap stocks to bet on
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.