SELL AND RUN

Finweek English Edition - - SIMON SAYS -

Bid­vest has made an of­fer for t he re­main­ing Ad­cock In­gram shares it doesn’t own, at R52 a share. This i s be­cause i t t ook out t he BEE s hare­hold­ers a nd t hat pushed it through the 35% level, so the com­pany has to make the of­fer – this af­ter it of­fered R70 while it t us­sled with Chilean CFR. But t he ques­tion is whether t he PIC, which owns just over 15% of Ad­cock In­gram, will sell at this price. In truth, would any­body? I was a holder of Ad­cock In­gram for a while, buy­ing at around R58 think­ing that if Bid­vest buys at R70 then R58 must be a good price. But con­tin­ued weak­ness in the share price and com­ments f rom Bid­vest i n its an­nual re­port of Septem­ber last year say­ing that things were worse than it thought and that it had over­paid, made me exit at around this R52 of­fer price. Cer­tainly if I was still hold­ing I would take the R52 and run.

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