Durban - Minority shareholders of Laser Group, the logistics and human resources outsourcing concern, have virtually rejected a buyout offer by Commercial Finance Company (CFC), the investment trust that recently increased its stake in the group.
CFC, which acquired a 32 percent shareholding in Laser in March for R15 million, recently increased its interest to 45 percent when it entered into a shareholders' agreement with a consortium of Laser executive and non-executive directors
It was obliged to make an offer to the Laser minorities according to JSE Securities Exchange rules because its joint shareholding exceeded 35 percent.
The company offered to buy out the minorities for R1,90 a share, the minimum required by the rules, while Laser shares were trading at R3 on the JSE.
Michael Fuller, the chief executive of Laser, said the shareholders had been advised by both the board and an independent adviser not to take up the offer.
It was announced this week that only 845 Laser shares were sold to CFC, representing a mere 0,003 percent of the group's issued share capital.
CFC's interest in Laser was part of a strategy to invest in undervalued companies and give them strategic support.
Fuller said this move would enable Laser to start making acquisitions before the end of the year.
Laser closed untraded at R3 in Johannesburg. CFC was also untraded at R30,50.