Mazor plans buyout, delisting

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Mazor plans buyout, delisting

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Published Date: 2020-11-04 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mazor plans buyout, delisting

The company says the costs associated with being listed outweigh the benefits.

Mazor Group has proposed buying out minority shareholders and delisting after it failed to get sufficient benefit from being on the JSE.

The company, which designs and installs structural steelwork and aluminium facades, will offer investors 25c per share in a scheme of arrangement, a 32% premium to its closing price on Monday. Shareholders will get to vote on the deal at a general meeting on 28 December. A separate general offer will kick in if the scheme doesn't become operative, on the same terms.

Mazor said it hadn't experienced material advantages from being in the listed environment, having not garnered enough institutional shareholder support 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 were also a disincentive for new investors and a hindrance on existing shareholders' ability to realised their investment.

Last week, 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.

The company's shares didn't trade yesterday, closing unchanged at 17c.





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