News » TA News »

Old Mutual blocks TA scheme

17 September 2014

TA HOLDINGS’ scheme of arrangement failed to go through yesterday after Old Mutual voted against the transactions for Masawara to acquire the entire entire issued share capital of the company.

Masawara currently owns 41,04 percent of the issued share capital of TA and is proposing to acquire the 97 196 650 issued ordinary shares of TA it does not own at an offer price of $0,206 per scheme share.

The aggregate purchase considerations payable by Masawara for the scheme shares is $20 million. The aggregate purchase consideration payable to TA shareholders would be funded through a combination of Masawara ‘s internal resources and third party debt.

Of the eligible shares at the scheme meeting ,53 million shares voted for the scheme while 37,5 percent or 32 million shares were against the scheme while 2583 shares abstained.
The rejection of the offer is mainly on the issue of the 20,cents price which the shareholders deem as being too low.

The scheme required approval by a majority representing 75percent of the votes eligible by TA shareholders. Those in favour of the transaction will most likely opt for a substitute offer

TA traded unchanged at $0,15c on the Zimbabwe Stock Exchange yesterday.

Commentary from EFE securities says improved activity on the board could not curtail further losses as the bearish trend deepened on sustained profits taking .The mainstream index closed 61 percent worse off to 196,6.

Weighing on the index were five heavy cap stocks which were part of a record 14 losing stocks in the session.
This is the highest number of inter-day fallers since March of 2013.However,the relative decline compares more favourably with the largest year to date inter-day decline of -1,8 percent recorded on January 29,2014.

On average the ZSE has lost 0,01 percent since the beginning of the year to date.
Sell-offs in heavies Econet and seed Co were against recent record share price performances.
Econet softened 0,23 percent to 79,82 cents while Seed Co shaved -2.06 percent to 95cents.
Delta came off 0,76 percent to 130c as the freefall in the counter worsens.

The beverages maker whose parent JSE listed SabMIler is reportedly a subject of takeover by the world ‘s largest brewer AB In Bev,has pared -3,7 percent in the past 5 sessions.
Inns or likewise declined -1, 38 percent to 71, 9 cents as investors –the stock post full year results presentation.
Hippo was down -6, 67 percent to 70 cents making it among the worst performers in the session.

Star Africa which relies on Hippo for the raw sugar supply tumbled -12percent to 2, 2 cents after reports that the white sugar processor’s produce will hit the market this week after the refurbishment and upgrade of the Harare plant.
Production at the plant will almost double to 600 tons from the previous 350 tons a day.

Pioneer was bid and offers only at 2 cents and 4cents respectively after issuing a cautionary statement advising the market of its intentions to acquire a controlling stake in Tredcor Zimbabwe,a tyre making company.

Art was the session’s worst faller on a decline of -16,7percent to 0,5 cents while .CFI and Meikles were -3,85 percent and -3 percent weaker at 2,5 cents and 16 cents respectively.
Pelhams 50 percent gain was recorded as the largest gain was recorded as the largest gain in the session as the stock closed at 0,03 cents.Masimba gained 13,3 percent to 2,3 cents while cottco notched 6,25 percent to 6,25 percent to 0,85cents.
Natfoods kept surging on sustained demand as it added 1,825 percent to 280 cents.

Value traded went up 5 percent to $1,65 million attained from a volume of 38,63 million shares.
A block trade in Astra of 25,23million shares at 6,2cents augured both turnover and volume highlighting the market’s overall activity.

The deal contributed 40 percent to turnover while contributing a glossy 65percent to overall volume traded.-Wires