Why Holdsport investors spurn offer from Joffe
Insider says there’s resistance over the valuation being applied to the business
The proposed bid for Holdsport by Brian Joffe’s Long4Life is being opposed by some minority shareholders of the retail company who want the offer to be revised. In July, Long4Life offered Holdsport shareholders a choice between 12.1 of its shares for each Holdsport share, or 11.2 shares plus R5 cash. The cash offer is capped at R204m. Holdsport’s businesses include Sportsmans Warehouse and Outdoor Warehouse. A shareholder, who spoke on condition of anonymity, said on Friday that while the strategic benefits of the tie-up were understood, "we don’t believe there is an appropriate valuation being applied to the business [Holdsport]. "We think the ratio is inappropriate and attributes a very high valuation to the Long4Life shares." Long4Life is believed to be trading at a high premium compared with its peers, which trade at a discount, but offer a high net asset value. Another minority shareholder said while they were not happy with the proposed offer, they were unlikely to oppose it. ...
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