Master Plastics set for February delisting


Master Plastics set for February delisting

Published Date: 2019-01-10 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Master Plastics set for February delisting

The plastics manufacturer was unbundled by Astrapak and listed on the JSE's AltX market in May 2017.

Master Plastics says it will delist from the JSE early next month after shareholders approved a buyout and it met all conditions to be taken private.

Shareholders voted in favour of the transaction last month after private equity funds Metier Capital Growth Fund II and MCGF II Investments increased their offer price to R2.20 per share from the previous R2. That followed discussions with 15% shareholder Prudential Investment Managers, which said the initial price undervalued the group's prospects. The final offer is a 19% premium to the company's share price the day before it increased its offer and is 55% higher than the volume-weighted average trading price in the 90 days leading up to 28 November. CEO Manley Diedloff will hold onto his 10.7% stake and continue leading the company.

Master Plastics makes and supplies specialised plastic products to the agriculture, food, dairy and general industrial markets. It was unbundled by Astrapak in May 2017 by way of a distribution in specie and listed on the JSE's AltX market. However, with limited trading in its shares, the offerers said the deal would provide "a liquidity opportunity for shareholders at an attractive premium".

The company said it would have better access to growth capital under its new private-equity owners, while delisting would result in material cost and management time savings. Private equity ownership would also result in increased flexibility to incentivise management and introduce new black empowerment partners.

Its shares rose 0.9% to R2.15 yesterday.

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