HOLDSPORT ACQUISITION
Why Long4Life's sweetened offer hit share price
‘It’s going to be a bit rocky with more acquisitions in the next three months,’ CEO Brian Joffe warns
Long4Life’s share price took a slide on Tuesday as the newly listed investment group increased its offer to acquire sports retailer Holdsport. Long4Life’s share price dropped almost 22% on the revised offer, which is still subject to approval. CEO Brian Joffe described the deal as "transformational" as it would greatly improve gearing capacity while the group pursued more acquisitions in coming months. The revised offer was a choice between 12.1 Long4Life shares for each Holdsport share, or 11.2 shares plus R5 cash, the companies said. The cash offer is capped at R204m. This beat an earlier offer of swapping 10.44 Long4Life shares for each Holdsport share — this amounts to a valuation of about R2.6bn. At Long4Life’s closing price of R7.80 on Monday, 12.1 of its shares were worth R94.38, a 44% premium to Holdsport’s R65.55 at the time. At the close of the JSE on Tuesday, Long4Life was trading at R6.06, meaning its offer was worth R73.33 per Holdsport share, a valuation of R2.93bn for...
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