Adcorp: Offer made to buy and delist Kelly

Adcorp has made an offer to acquire the remaining shares of Kelly Group that it does not already own. In a joint statement with Kelly yesterday, Adcorp said the acquisition proposal excluded the Kelly ordinary shares held by Kelly subsidiaries. Kelly shareholders can choose to receive one Adcorp ordinary share for every 13.75 Kelly shares held or R2.50 in cash for every share held. Both firms said the proposed transaction would produce opportunities for each other to benefit. Following the implementation of the scheme, an application would be made to the JSE to terminate the listing of Kelly. Adcorp bought a 30 percent stake in Kelly in April. Adcorp closed unchanged at R32.20 on the JSE yesterday, while Kelly rose 2.13 percent to R2.40. – Nompumelelo Magwaza