COMPANY COMMENT
Suspend the share briefly when a company releases a life-altering notice
Just after 10am on Friday, Clover issued a SENS statement advising shareholders that it had entered into negotiations with a third party regarding a potential acquisition. The share price shot up from just over R14 to R16.70 and almost three times the daily average volume was traded. As the JSE contemplates the submissions it has received in response to the consultation paper it released in September, perhaps one thing it should consider is suspending a share when the company releases a potentially life-altering SENS announcement. The prospect of a third party acquiring Clover’s entire issued share capital would certainly qualify as a life-altering event for the company. There was nothing untoward in Friday’s heavy trading in Clover shares. But there may be a few shareholders who were not alert enough to notice the SENS announcement and are now feeling a little disappointed they are no longer Clover shareholders. Many of the sales might even have been prompted by automated processes...
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