Hulamin, the Pietermaritzburg-based aluminium product manufacturer, saw its share price slump a massive 23.9 percent yesterday after it announced that a potential, as yet unnamed, buyer of the firm had withdrawn its interest.
The share price was last seen at R3.78 per share yesterday afternoon. Last October Hulamin said it had received “an expression of interest to acquire the business.”
At the time, Hulamin’s board saw the potential transaction as beneficial, and lengthy discussions took place. The parties had concluded on a deal price that was considered fair to the shareholders by an independent board and which constituted a substantial premium to the current Hulamin share price. The offeror also undertook a comprehensive due diligence, which was successfully completed to their satisfaction.
However, the offeror was unable to agree satisfactory terms with all stakeholders. In addition, the offeror had become concerned about recent global economic uncertainty, and so was unable to conclude the transaction, Hulamin said.
Hulamin’s profit soared by 760 percent for the period ended December 31 2021, while operating profit came to R538m from an operating loss of R81m in the previous year. The strong performance was due to higher aluminium prices, import duty protection and stronger domestic sales.
BUSINESS REPORT