CHANGE OF OWNERSHIP
Torre shares rise on plans to delist
Torre Industries, the capital equipment provider that is majority owned by Christo Wiese-backed Stellar Capital Partners plans to delist from the JSE, it said on Monday. The decision is part of Torre’s plans to raise black ownership from 29% to 51%. Torre said this was a "business imperative" that would be easier to achieve in the unlisted market. The company’s shares closed 27% up at 93c on Monday, while Stellar Capital’s stock ended the day 5% better at 62c. Stellar Capital says on its website its portfolio is worth R1.10 a share. That implies a valuation discount of 43.6% using Monday’s closing price.
Torre said that going private would also eliminate listing and other costs while giving the company more funding flexibility and allowing shareholders to sell their relatively illiquid stock. The announcement "came as no surprise", as a buyout or delisting was "the only eventuality for Torre", Vunani Securities analyst Anthony Clark said in a note to clients. Torre’s share pri...
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