Cartrack shareholders dismiss offer


Cartrack shareholders dismiss offer

Published Date: 2019-07-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

Cartrack shareholders dismiss offer

A mandatory offer was triggered after CEO Zak Calisto's investment company took a 68% stake in the group.

Minority shareholders in Cartrack have declined an offer to buy them out. The offer was made at a 30% discount to its closing share price on Wednesday.

The fleet management and vehicle recovery group was forced to make a mandatory offer to minorities following share purchases by Karoo (Pte) Ltd, an investment holding company owned by CEO and founder Zak Calisto.

Karoo bought 204.5-million shares at R13.44 each on 28 February. A day earlier, Calisto himself bought 864,000 shares at R12.30 each. The purchases took Karoo's shareholding to 68.2% and Calisto's to 0.28%.

A mandatory offer kicks in when a shareholder increases its stake to 35% or more of the voting rights of a company. The offer must be paid at the highest price the shareholder paid for the relevant shares in the six months preceding the offer.

Cartrack said shareholders representing just over 89% of the shares not owned by Calisto and Karoo had irrevocably undertaken not to accept its R13.44 per share offer. They include Gobi Capital, Global Asset Holdings, Georgem Holdings, Optis Global Opportunities Fund, Marcuard Heritage and Coronation Asset Management - as well as the Cartrack Executive Incentive Trust. Together they hold 28.1% of the stock not owned by Calisto and Karoo.

Its shares fell 2.3% to R18.75 yesterday.

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