Marc Hasenfuss Editor-at-large

Howden Africa shareholders hoping to fend off a buyout offer, or at least secure a higher exit price, probably won’t like the independent assessment from Mazars Corporate Finance in the just-released transaction circular. In short, the outcome of Mazars’ valuation of Howden resulted in an indicative valuation range between R30.40 a share and R34.60 a share, with a core value of R32.20 a share. This means the offer consideration of R44 a share exceeds this valuation range … and is deemed "fair and reasonable" to Howden minorities. Mazars indicated the valuations were performed taking cognisance of Howden’s current and planned operations as well as other market factors affecting these. With so much of the underlying value locked up in its cash pile of more than R1.2bn, it seems Howden’s parent is getting a great deal. Even if there are some trying times ahead before the spending cycle turns again, Howden had the balance sheet and operational wherewithal to keep chugging along. I’d be ...

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