Avior Capital Markets shares drop in value after research firm announces delistings

AVIOR Capital Markets’ share price remained unchanged at 68 cents since Friday’s JSE close yesterday after the markets research and trading firm announced that it would delist from the JSE’s main board and the alternative exchange (AltX) following the buying of all of its ordinary shares by Char-Trade.

Last year, Char-Trade made an offer to acquire all of the issued ordinary shares of Avior by way of a scheme of arrangement, which would result in Avior’s delisting from the JSE.

This excluded the Avior shares held by the excluded shareholders, Stately Horse Properties and Kevin Mattison.

Stately Horse represents 60.89 percent of Avior shares in issue, while Mattison holds 32.4 percent of Avior shares in issue.

Char-Trade’s general offer was a cash consideration of 67 cents per Avior share to Avior’s shareholders for an aggregate amount of R6.5 million.

“With effect from Monday, February 17, the offeror will acquire all Avior shares held by Avior shareholders other than the excluded shareholders and the Avior minority shareholders will receive the cash consideration of 67c per Avior share,” Avior said in a statement.

“The listing of Avior on the AltX board of the JSE Limited will be suspended with effect from the commencement of trade on Wednesday, February 12, and terminated with effect from the commencement of trade on Tuesday, February 18.”

Avior’s share price has declined 2.86 percent in the year to date. Last week, Avior warned that its headline earnings per share for the six month period ended October 31, 2019, would reflect a decrease of more than 100 percent when compared to the previous corresponding period.