RAC prepares for Astoria distribution

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RAC prepares for Astoria distribution

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Published Date: 2021-04-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

RAC prepares for Astoria distribution

Following the distribution, RECM and Calibre will be left with a majority stake in Goldrush as its biggest investment.

RECM and Calibre (RAC) says its shareholders will receive one Astoria share for each RAC share they held on Tuesday as it prepares to unbundling its stake in the company to its investors. Following the distribution, the investment house can apply to the JSE for the suspension on Astoria's stock to be lifted as it will meet the exchange's liquidity requirements.

RAC, whose preference shares trade on the JSE, increased its interest in Astoria to 95.5% at the beginning of last year after it was obliged to make a mandatory offer to shareholders of the investment group. That followed subsidiary Livingstone Investments' acquisition of more than 60 million shares from Astoria shareholders at R2.40 each in October 2019, which took its stake to 78.5%. Mandatory offers kick in when an investor acquires more than 35% of a company's listed ordinary shares.

Following a restructuring of its portfolio, RAC said its stated intention was to distribute the majority of its holding in Astoria. It will retain a 9.9% shareholding in the company, along with its largest asset - a 58.8% stake in gaming business Goldrush - and some smaller investments which it is in the process of being selling or preparing for sale.

RAC said Goldrush, which has electronic bingo terminals and limited payout machines, had weathered the Covid-19 lockdowns, as well as the ensuing difficult economic climate well.

RAC expects to publish its results for the year to end-March in the fourth week of June.





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