Free at last
THIS HAS BEEN an unduly long piece of corporate action, largely because of its former board of directors. Interim results (to end-March) with Kansai Paint now in control were terrible.
Headline earnings per share dropped by 50% and cash flow was down 47%. It’s not a great start for the new controlling shareholder. But Kansai was at pains to point out that – barring “unusual items” – EBITDA would have declined by only 9% instead of the 32% it fell by to R152m.
The unusual items are R20m, relating to the merger transaction costs, and R30m in terms of accounting regulations about the allocation of share appreciation rights. The share scheme was approved in September 2008 and issued in February this year.
Not being aware of the details of the share appreciation rights, it may be significant in that not long after the issue, the