Things at Protech Khuthele just got messy, very messy, with Eqstra making an offer to acquire the shares it doesn’t own at 60c/share. The Protech board issued a terse Sens stating that Eqstra had gone hostile on the offer, but Eqstra rebutted with a detailed Sens that essentially says the Protech board has been blocking it and refusing to engage it. The claims made by Eqstra paint the Protech board in a very dim light and the overall result for shareholders is a very low-ball offer of 60c. When I f irst wrote about a possible takeover of Protech by Eqstra back in March, I suggested 90c-100c was a possible price and the stock was trading around 60c with a TNAV of around 85c.
Now it seems Protech has been dodging Eqstra, and shareholders are being offered 60c, which, while a premium to the recent share price, is well below TNAV and earlier market expectations. Bottom line, the Protech board seems to have done no favours to shareholders and while 60c is a low-ball offer, if rejected the stock is likely to collapse back to around 30c. Simon says a board needs to look