Buildmax: Interest received from third party

Buildmax’s board of directors had received a non-binding expression of interest from a third party to acquire the entire issued share capital of the company, it said on Friday.The identity of the proposed buyer was not disclosed. Buildmax, a listed open-cast mining contractor and building materials supplier, said it would also be selling certain assets and businesses of Buildmax Aggregates and Quarries. A memorandum of understanding had been signed with another third party, also not identified. The company said its board had in principle agreed to proceed with both these transactions, adding that an independent committee of the board would be formed in accordance with the JSE’s takeover regulations to ensure appropriate governance throughout the negotiations. However, Buildmax stressed that there was not any certainty that the expression of interest received or the memorandum signed regarding the sale of Buildmax Aggregates and Quarries would result in a transaction. It advised shareholders to exercise caution when dealing in the company’s shares until a further announcement was made. – Roy Cokayne