Verimark’s Michael van Straaten in new bid to go private
The retailer's first attempt to delist, in 2009, was scuppered by minority shareholders
Nine years after a failed attempt to take Verimark private, CEO Michael van Straaten is trying again with a buyout offer to all minority shareholders so the company can be delisted. The 41-year-old retailer, which has lost about two-thirds of its market capitalisation since listing in July 2005, joins a handful of other small-cap firms with plans to leave the JSE. These companies include logistics provider Cargo Carriers, mining group eXtract and industrial firm Torre Industries. Monday’s announcement that the Van Straaten Family Trust wanted to buy out Verimark’s minority shareholders and subsequently delist the company lifted the retailer’s stock 11% to R1.01, valuing it at R113m. Monday’s gain was the biggest since August 22. Verimark sells imported homeware, fitness, beauty and educational products. The company listed 13 years ago at a valuation of more than R300m. Slightly more than a year later, its market capitalisation peaked at R474m. But a sharp decline in profitability fo...
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