NIVEUS MAY DELIST AFTER HCI OFFERS TO BUYOUT MINORITY SHAREHOLDERS

Hosken Consolidated Investments has offered R2.40 for Niveus shares, a discount of 3% from the company’s closing price on Thursday

Hosken Consolidated Investments (HCI) has made a cash offer for the shares of Niveus Investments that it does not already own.

HCI’s offer of R2.40 represents a 3% discount to Niveus’s share price on Thursday, though it represents a 24% premium to the volume weighted average price over the 30 business days to September 25.

Niveus plunged 11.29% to R2.20 on Friday morning as the JSE opened, putting it on track for its worst one-day performance in three months.

HCI already directly owns about 51.7% of Niveus, according to a joint statement by the two companies on Friday, while its wholly owned subsidiary Johnnic owns 1.5% of Niveus.

Its second-largest shareholder is financial services firm Legae Peresec, which holds 12.6%, according to Niveus’s 2019 annual report.

In a separate announcement on Friday, Niveus said it had appointed Mohamed Haroun Ahmed to the board as an independent non executive director. Ahmed is the lead independent director of Montauk Holdings, Deneb Investments, Hospitality Property Fund and Tsogo Sun Hotels.

HCI has a 83% holding in Deneb and a 49% holding in Tsogo Sun Hotels, according to the group’s 2019 annual report.

Source: Business Day – Karl Gernetzky