HCI BUYS BALANCE OF KWV SHARES
- February 28, 2012
- Posted by: admin
- Category: KWV Holdings
Hosken Consolidated Investments subsidiary, HCI-KWV Holdings, has made a mandatory offer to buy the shares it does not already own in KWV — once the jewel of the Cape drinks industry
HCI’s indirect shareholding in KWV has risen to more than 35%, and HCI is required in terms of the takeover regulations of the Companies Act to make a mandatory offer to KWV shareholders at the highest price paid by HCI in the past six months.
HCI’s indirect shareholding in KWV increased to 35,01% (net of treasury shares) subsequent to the acquisition of 688 KWV shares by HCI at 850c a share.
“HCI is aware that there is limited liquidity in the KWV shares and the offer provides KWV shareholders with an opportunity to realise their investment at a slight premium to the recent prevailing trading prices,” HCI said.
The offer consideration represented a premium to the KWV market price of 832c as at December 15, and to the 30-day volume-weighted average trading price of KWV of 832c for the 30-day period to the last practicable date, HCI said.
It obtained Competition Commission approval in April and therefore the offer is not subject to any conditions precedent other than the approval of the Takeover Regulations Panel.
Should the offer be accepted by shareholders, KWV will become a wholly owned subsidiary of HCI, following which the KWV shares will cease to be traded over the counter.
The offer’s closing date is March 2, the company said. “We hope our entry into its shareholding will result in it developing a stronger vision of its participation in the liquor industry,” HCI said earlier this year.
Source: Business Day – Annaleigh Vallie