CAPE TOWN - Linde plc, Afrox’s German parent, has made an offer to all the holders of Afrox’s shares that it doesn’t already own, and plans to delist Afrox from the JSE and Namibian Stock Exchange.
Afrox, which listed in the JSE in 1963, said in a statement yesterday the proposal was made because Linde believed the local group was more suitable for an unlisted environment, as Afrox’s low share liquidity deterred potential investors and its listing provided little benefit to shareholders.
Linde also aimed to improve integration among the Afrox operations with other Linde group operationsEdward , which could be more easily done in an unlisted environment.
A special dividend of R3.82 was proposed. The offer to shareholders in terms of the proposed scheme of arrangement was R21.18 cash per share, which represented a 58.2 percent premium to an adjusted 30-day average price. The share price closed at R17.51 on Friday.
Linde had already received support from Afrox shareholders who hold about 63.5 percent of the shares.
Afrox’s revenue fell to RR2.7bn in the six months to end-June from R3bn at the same the previous year, while headline earnings per share fell to 76.5 cents per share from 111.3 cents per share in 2019.
Attributable profit was R240m versus R345m at the interim stage in 2019. At the time, management said its cash balances of R1.17bn placed the group in a strong position to take advantage of future opportunities.
BUSINESS REPORT