Infrasors: Afrimat offer is ‘fair and reasonable’

Published Jul 4, 2013

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The independent board of listed basic building materials company Infrasors believes the revised offer by listed open pit mining and industrial minerals group Afrimat to minority shareholders is fair and reasonable. Last month, Afrimat raised its offer to Infrasors minority shareholders from 35c to 65c a share, a premium to the 60c price at the time. In March, Afrimat acquired a 50.4 percent stake in Infrasors for about R32.7 million. Shareholders who had already accepted the 35c a share offer, the same price as Afrimat paid for its initial stake, will be paid the higher price in the revised offer, which closes at noon on Friday. Infrasors said yesterday the board believed the revised offer was reasonable as it was at a premium to the 30- and 60-day volume weighted average price of an Infrasors share. BDO Corporate Finance determined a valuation range of 54c to 67c a share. Infrasors shares rose 4.62 percent to 68c yesterday. Afrimat was unchanged at R8.75. – Roy Cokayne

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