Marc Hasenfuss Editor-at-large

Building supplies group Distribution and Warehousing Network (Dawn), a former market darling which, just 18 months ago, was able to raise R358m in a rights issue, could be snatched up in an outrageous low-ball offer of R6m. The buyout offer pitched at 1c a share shocked most market observers on Tuesday — notwithstanding the brittle trading conditions prevalent in the building and construction industry. At the end of March this year Dawn stated its tangible net asset value at more than 50c a share. “The value destruction for shareholders has been far worse than Steinhoff International [which is widely regarded as the major blowout on the JSE in recent years],” said Opportune Investments CEO Chris Logan. Logan, whose company used to own Dawn shares but has since sold out, said the rock-bottom buyout price pitched for Dawn needed to be contextualised by the fact that the company held two rights issues — one in 2009 to raise R720m at 720c a share and another in 2017 for R358m at 100c a ...

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