Johannesburg: The board of directors of listed passenger transport company Putco said yesterday that the offer for the company made by Hosken Consolidated Investment was defective. The company said that the offer did not comply with the regulations for takeovers and mergers and could not be implemented in the form in which it was proposed. The board has considered the securities regulation panel about the offer. Putco said the panel had obtained legal advice that confirmed that the offer could not be implemented unless a general exemption or dispensation in terms of rule 34 of the code on takeovers and mergers was given. The securites regulation panel has told Putco that it will not grant a dispensation. Hosken intends to offer to purchase all or some of the isued ordinary shares of Putco by means of a scheme of arrangement. If the scheme is implemented, Putco shareholders will be obliged to sell to Hosken 38 percent of all the Putco shares held by them (excluding the 30c dividend) for R5.50 each. The balance of each Putco shareholder’s shares would be purchased by Hosken, if ofered for sale (excluding the 30 cent Putco dividend), for R7.50. The entire offer is subject to the acquisition by Hosken of not less than 51 percent of Putco’s issued ordinary share capital. Putco said its shareholders would be informed of material developments relating to the offer.

Source: This Day Business – i-net bridge