REMGRO WAIVER
Activist forces review of Distell deal
Remgro faces the possibility of restructuring being unwound if panel rules in shareholder activist Albie Cilliers’s favour
Shareholder activist Albie Cilliers has forced a review of the Takeover Regulation Panel’s decision to waive Remgro’s obligation to make an offer to Distell minority shareholders. Cilliers’ dramatic and unprecedented move creates uncertainty around the status of a multibillion-rand transaction that was eight years in the making and involved tens of millions of rand of legal and corporate advisory fees. Legal counsel for the panel, Basil Mashabane, has informed Cilliers that the takeover special committee has convened a meeting on January 11 to hear his arguments as to why the panel should not have granted Remgro a waiver of the mandatory requirement to make an offer to minority shareholders. If the panel rules in Cilliers’s favour, Remgro faces the possibility of the restructuring being unwound. One of the conditions precedent to the deal was the panel’s approval of the waiver.This means Remgro will have to decide whether it wants to proceed with the deal. If it does it will have to...
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