Sekunjalo Investment Holdings steps in to make offer to Premier Fishing minority shareholders
SEKUNJALO Investment Holdings has stepped in to make a firm offer to the minority shareholders of Premier Fishing & Brands (PFB), R1.60 a share, ahead of the delisting of PFB by way of a scheme of arrangement.
The offer is substantially higher than the 43c the share traded at on the same day a year ago.
African Equity Empowerment Investments, the biggest shareholder in PFB with a 56.23% stake, had earlier indicated it would make the offer to PFB’s minority shareholders, who hold 6.14% of the company’s shares.
PFB confirmed on Friday that the JSE’s Takeover Regulation Panel “had agreed to the substitution of offeror with Sekunjalo Investment Holdings”, the company said. Sekunjalo already owns 9.27 million or 3.57% of the PFB shares in issue.
PFB said it had been listed on the JSE since March 2, 2017, when it had been envisaged that the listing could provide the company with access to capital to grow its business organically and through acquisitions, and to provide shareholders with a liquid, tradeable asset within a regulated environment, and with a market-determined share price.
However, “the PFB board is of the opinion that its current listed structure no longer benefits PFB (and, indirectly, its shareholders) due to the illiquidity and low free float of PFB shares, as well as the substantial administrative costs associated with, and the corporate burden of management time being spent on, its listing,” the group said. The shareholder meeting to approve the proposed scheme of arrangement would be held on May 5 this year.
PFB’s directors said that, after the proposed offer to minorities by Sekunjalo, and post the delisting, “PFB will continue to be dynamic and continuously adapting in order to look after the needs of stakeholders”.
In February, PFB’s shareholders voted in favour of a R95 million investment in Talhado Fishing Enterprises, the country’s biggest harvester of squid, increasing its stake in the firm to 80.65%. PFB had acquired 50.3% of Talhado in May 2018. Talhado is the largest exporter of South African squid to the European market.