Petmin management launches buyout offer at a 15% premium
Petmin shareholders received a management buyout offer on Monday morning, at R1.55 a share, a 15% premium to Thursday’s closing price of R1.35. The share jumped 9.6% to R1.48 after the announcement. Petmin’s management proposes to buy 577-million shares in issue for R617m and then delist the coal miner from the JSE. Private equity firm Capitalworks will provide a R150m loan for the proposed leveraged management buyout. Since January this year, Petmin’s share price has grown 23%. Capitalworks is a mid-market private equity firm which manages $500m worth of private equity funds. In its Sens announcement, the company said the offer was aimed at alleviating costs associated with listing on the JSE, while also offering shareholders the opportunity to realise their investment in Petmin. Petmin posted a profit of R11m for the year to June, down from R125m the year before. Profit from operating activities was R230m, versus R217m before. Petmin has a niche iron-ore project in Canada and bene...
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