Remgro mops up illiquid RCL stock


Remgro mops up illiquid RCL stock

Published Date: 2020-12-03 | Source: Stephen Gunnion | Author: Stephen Gunnion

Remgro mops up illiquid RCL stock

The investment holding company says an offer to buy up to 100 million shares should not be seen as a takeover.

Remgro bought more than 11 million shares in RCL Foods last week from one of its subsidiary's minority shareholders. And it says it's willing to offer the same deal to other shareholders who want to get out of the illiquid stock.

The investment holding company bought the shares, equal to about 1.2% of its issued stock, at R8.05 each, taking its holding in the poultry and food group to 72.6%. Its high ownership of RCL impedes buying and selling of the stock.

Remgro said its broker would place bids in the market to acquire up to 100 million RCL shares at R8.05 each from the start of trade yesterday until the market close on 11 December - or until all the shares had been bought. While the move would increase its ownership of RCL, it said the purchases should not been seen as a general or partial offer to buy out all minorities and take the company private.

The offer represents a 2.4% discount to RCL's closing price on Tuesday.

RCL's shares closed 2.4% lower at R8.05 yesterday while Remgro added 0.3% to R93.81.

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