Two more firms eye delisting from the JSE
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TWO MORE companies are likely to terminate their listing from the JSE – this time Alaris Holdings and CSG.
Alaris, a leading radio frequency technology group, said a consortium of companies, including Tadvest, had made an offer to acquire its entire issued share capital for R160 million, while CSG, the staffing solutions group, yesterday announced that it was being bought out by the ARC Fund. Alaris said both it and the consortium believed there was limited benefit for Alaris being listed on the JSE.
“Having not garnered sufficient institutional shareholder support to justify the limitations imposed by the regulatory processes and the compliance costs and other costs associated with and incidental to being listed on the JSE,” said the company.
The consortium and Alaris considered the lack of liquidity of Alaris shares to impede its ability to raise capital in the market, a disincentive for institutional investors, and a hindrance on existing shareholders’ ability to realise their investment in Alaris in the market.
“Accordingly, from a consortium perspective, the costs associated with Alaris being listed on the JSE outweigh the benefit of being able to publicly trade in Alaris shares,” said the company.
in a statement, the consortium also said the deal and proposed delisting of Alaris from the JSE would place Alaris’ management in a position to be better aligned with a tighter shareholder base, which should enable the company to reposition the business to focus on further global expansion.
“It is the intention of the consortium to reposition the business of Alaris for further global expansion and, at the appropriate time, depending on the financial performance of the company and the prevailing market conditions, seek a listing on an international exchange,” said the consortium.