Cartrack shareholders shun cheeky offer


Cartrack shareholders shun cheeky offer

Published Date: 2019-10-08 | Source: Stephen Gunnion | Author: Stephen Gunnion

Cartrack shareholders shun cheeky offer

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

Almost no shareholders have taken up a mandatory offer by CEO Zak Calisto's investment firm to buy their stock at a significant discount. While a large number of institutional shareholders had already undertaken not to accept the R13.44 per share offer, it remained open until noon last Friday. By then, shareholders had tendered just 28,943 shares, representing about 0.001% of its issued share capital, to the bid.

Karoo, an investment holding company owned by Calisto, was obliged to make the offer to minorities after it 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. When Karoo's offer was announced on 18 July, it represented a 30% discount to its prevailing share price at the time. This could indicate that Karoo didn't want to further increase its holding in the company or take it private.

The company's shares closed 3.6% down at R20.32 yesterday.

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