Group Five share recovers from crash, on calm reaction to Greenbay
The stock rebounded strongly after the company refused to let Greenbay rush it into a R1.6bn sale of its European subsidiaries
Group Five’s share price rebounded 12% to R12 on Monday from Friday’s 14% crash to R10.70 after it refused to let Greenbay rush it into a R1.6bn sale of its European subsidiaries.On Friday at 4pm — an hour before the deadline Greenbay set when it announced its offer the previous Friday after business hours — Group Five issued a statement saying it decided to let the offer lapse since Greenbay refused to allow reasonable time for an independent expert to assess the proposal.Group Five said its independent board had approached Greenbay "highlighting that the timeline proposed by Greenbay was impractical, and offering to meet to discuss timing and its preliminary observation that the offer substantially undervalues the target assets".Greenbay was "not persuaded that a meeting would be productive", and therefore the Group Five independent board’s "preliminary observation that Greenbay’s offer price substantially undervalues the target assets stands".Greenbay issued a statement on Monday...
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.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.