Value Group sees little value in JSE listing

Published Date: 2021-02-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

The warehousing, distribution and logistics group is mulling an offer to minorities so it can delist from the exchange.

Value Group's share soared yesterday after it told investors that it was considering delisting its share from the JSE.

In a cautionary announcement, the warehousing, distribution and logistics group said due to its tightly held strategic and controlling shareholding, there was little interest in the shares from institutional investors, which resulted in extremely low liquidity and little trading. In recent years, share trading statistics showed that its own stock repurchases were the only meaningful source of liquidity available to shareholders wishing to trade their shares.

Value Group said the delisting would be accompanied by a cash offer of R6.75 per share to minority shareholders, a 49.7% premium to the average price the stock traded at over the 30 days to 17 February. It said it had received letters of support from minority shareholders representing 42.2% of shares for the proposed offer.

The company's shares close 43% higher at R6.50 yesterday.