Media group Avusa confirmed on Monday that it had received an “unsolicited expression of interest” from a consortium represented by Capitau Holdings to acquire the entire issued share capital of Avusa.
Avusa's share price surged 18.43% to R25.00 rand during today's session.
The proposed deal involved Capitau, an alternative asset management company, RMB Ventures, a division of FirstRand Bank, and “certain co-investors”.
Avusa stressed that this takeover bid was not a firm intention to make an offer.
After receiving the unsolicited expression of interest, Avusa said its board had established an independent sub-committee to consider Capitau's proposed acquisition.
Avusa said Capitau's unsolicited expression of interest stated that the consortium would only consider a formal offer once the consortium's funder provided cash confirmations, approval of the funder's investment and credit committees, and Capitau and RMB investment committee approvals.
Other conditions for the formal offer also included key members of the existing Avusa management team agreeing to continue their employment post the proposed acquisition, and the consortium undertaking and being satisfied with the results of a detailed due diligence. - I-Net Bridge