Mazor prepares to leave the JSE


Mazor prepares to leave the JSE

Published Date: 2021-01-11 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mazor prepares to leave the JSE

A general offer to shareholders has kicked in after a scheme of arrangement failed to win enough support.

Mazor Group says its JSE listing will be suspended on the 27th of the month after shareholders approved the move at a general meeting last Thursday. However, a scheme of arrangement offering 25c per share to buy out minority shareholders didn't get enough votes. Instead, a general offer will kick in on the same terms.

Mazor, which designs and installs structural steelwork and aluminium facades, announced the proposed delisting in early November. The offer represented a 32% premium to its share price ahead of the announcement.

The company said it hadn't experienced material advantages from being in the listed environment after it failed to achieve sufficient support from institutional shareholders to justify the limitations imposed by the regulatory processes and the compliance costs and other expenses associated with being listed. The lack of liquidity in its shares was also a disincentive for new investors and hindered existing shareholders' ability to realised their investment.

Mazor reported a wider first-half loss after revenue almost halved to R113 million for the six months to end-August. Its headline loss was five times bigger at 23c per share. It felt the full impact of the Covid-19 as the construction sector ground to a halt at the height of the lockdown. Constrained infrastructure spend by the government also weighed on its performance.

Its shares closed unchanged at 24c in a single trade on Friday.

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