SHARE BUY-BACK
Howden Africa weighs JSE delisting plan
Howden Africa, the manufacturer of air, gas and liquid handling equipment, says it is considering a JSE delisting by means of a share buy-back. This will give minority shareholders an opportunity to exit from tightly held shares with poor liquidity. Up to 55.39% of the firm’s shares are held by its holding company, Colfax Corporation, the New York Stock Exchange-listed diversified industrial technology company. As a result, Howden said regulatory processes and associated costs were being duplicated. It said its board had been considering "the continued viability" of its listing on the JSE, in light of, among others, the shares’ illiquidity and poor analyst coverage. It said it was not expecting to raise equity capital in the near future "not to make use of a listed share scheme to incentivise staff". Howden said delisting had also become necessary to complete a BEE transaction in the group "which the board believes is significantly easier to achieve in an unlisted environment. Havin...
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