Torre Industries to delist from the JSE

TORRE Industries, the JSElisted industrial group that provides equipment, parts and support services, yesterday announced that its board had resolved to delist the entity in a move meant to help the company achieve its strategic objectives.

The Torre board said that among its key objectives was the improvement in Torre’s BEE ownership levels from 29 percent to 51 percent and this was a business imperative that was receiving the utmost attention and priority.

Torre Industries’ share price surged more than 35 percent to 99c a share after the announcement was made. It eventually ended the day 27.4 percent higher at 93c a share.

Stellar Capital, the holder of 57 percent of the issued shares of Torre, issued a cautionary statement in reaction to the news.

Decision

The Torre board said that it had considered various options in order to achieve the company’s strategic objectives before coming to this decision.

It was of the view that the empowerment requirement would be significantly easier to achieve in an unlisted environment.

The company, formerly known as Torre Industrial Holdings, said other factors to be considered and benefits from operating in an unlisted environment were the ability to eliminate listing costs and central costs; more flexibility in relation to the capital structure (which is likely to increase efficiency) and improved overall returns for shareholders; and opportunity to exit Torre shareholders from shares that are tightly held with relatively poor liquidity and analyst coverage.

The board said that it had established an independent delisting committee to consider and approve the terms of the proposed offer and proposed de-listing as well as recommend an appropriate offer consideration. When approached for comment the company said that it was not in a position to state when the de-listing would take place.

The company’s capital equipment segment sells and rents heavy lifting and earth moving equipment to the mining, agriculture, and construction industries.

Its parts and components segment supplies after market spare parts to the automotive, construction, mining, and agriculture industries. Its analytical services segment provides scientific analysis and laboratorial services.