NEW MINING COMPANY
Buildmax shares dive on takeover bid
A number of Buildmax’s senior officials including Bulelani Ngcuka, a former ANC heavyweight, has put together a new company to launch a takeover bid for the whole of the mining contracting group. The cash offer for the company engaged in contract mining and other services in the mining sector was pegged at 15c per share, a price that the company had last touched briefly towards the end of July 2017. In the year to date, Buildmax’s shares had grown by nearly 32% to 25c on Wednesday. The shares fell hard on Thursday to 15c, a 36% decline. Nonexecutive director Ngcuka, a former national director of public prosecutions, is a cofounder of Vuwa Investments, one of the black empowerment entities in Buildmax. Vuwa owns 6.75% of Buildmax and is acting in concert with the group making the offer. Justin Colling, Buildmax’s CEO, who is also acting in concert with the new company, owns 10% of Buildmax. If the bid is approved and recommended by Buildmax’s independent nonexecutive directors after...
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