Libstar wants shareholder to trim stake to boost liquidity
Libstar, the food producer and supplier that has struggled to make a mark since its listing in May, wants its biggest shareholder to reduce its stake in a move to boost liquidity in the firm’s shares. Private equity fund APEF’s 36.75% shareholding in the company could be one of the reasons for the lacklustre performance of the company’s share price since it listed on the JSE on May 9. Libstar wants the stake to be no more than 26%. Since debuting on the JSE at R12.50, Libstar’s share has lost almost 21%, outpacing the JSE’s food producer index, which is down 11.52% in the period.
APEF’s significant shareholding was an overhang on the share price, Libstar commercial and financial director Robin Smith said on Tuesday. "Libstar management would like to assist APEF place some of the shares with strategic or institutional investors. It is something that we think about all the time." Libstar is the owner of Cape Herb & Spice; Denny, which is widely known for mushrooms; dairy group L...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.