Time to say goodbye
As much as financial hacks hate to see small-cap companies scuttling off the JSE, there is probably some relief in the impending departure of soap and cosmetics maker Beige Holdings and boutique hotel specialist Gooderson Leisure Corporation.
For the best part of a year Beige shares have bounced around between 2c and 3c, reflecting the market’s disenchantment with the company ever shifting closer to sustained viability. Controlling shareholder Lion Match already owns more than 90% of Beige, and might as well take this perennial underperformer out of the public eye to restore some semblance of value.
Gooderson, which lacks the critical mass (and strategic touch) of a City Lodge, is also being bought out by major shareholder ALJU Family Trust.
ALJU is offering minority shareholders 65c/share. The price seems fair since Gooderson drifted below 40c in recent weeks — and recent earnings probably did not support the stated 157c/share tangible net asset value. Gooderson shareholders might do well to check out.