ABC Holdings to evaluate share price

ABC Holdings to evaluate share price
Published: 19 August 2013
ABC Holdings' board has appointed a sub-committee of independent directors to oversee evaluation of the business in order to appropriately advise minority shareholders to sell or keep their shares.

There are huge differences between majority shareholder ADC and minorities over the share price at which the former has offered to buy out minorities in the group.

ADC is required in terms of the Botswana Stock Exchange rules, where ABC Holdings has its primary listing, to offer to buy out minorities after increasing its stake in the group from 23 to over 50 percent.

Huge differences have emerged between shareholders over the US60c per share price ADC has offered minorities after gaining controlling interest when it underwrote ABC's $50 million rights issue.

ABC Holdings group chief executive Mr Doug Munatsi in an interview last week said the group would engage independent advisors to determine the value of the business to be used to guide minorities.

"The board has appointed a sub-committee of independent directors who are actually overseeing that whole process so we will go to a party Deloittes, KPMG, Imara or ourselves.

When that party gives an opinion to say 'we the think the price is X', the independent committee of the board is going to advise the whole board.

"We are not independent, we are not allowed in that sub-committee, there also are some shareholders who are not independent," Mr Munatsi said.
- herald

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