BSI Steel announces a buy-out offer at 50c a share as it prepares to de-list
BSI Steel’s share price jumped 47% to 44c on Wednesday after announcing a buy-out offer at 50c a share, valuing the company at R360m.
The company said its board had decided to de-list the company due to "the costs of remaining listed on the JSE, the absence of liquidity in the share, the company not expecting to raise equity capital in the near future, and the questioned necessity of the listing to support the growth aspirations of the BSI group".
BSI shareholders have the option of accepting 50c per share in cash or remaining investors in an unlisted company. The company has irrevocable undertakings from investors holding 76% of its shares.
In its most recent results for the year to end-March, BSI reported a 6% decline in revenue to R2.4bn while net profit grew 70% to R56m.