South Africa-based Capespan has revealed that it is to restructure its shareholding set-up, a move it sees as a 'strategic imperative'.
'In an aim to simplify the Capespan Group shareholding structure, Capespan has announced a series of transactions, which if approved, will result in all shareholders having a direct shareholding in Capespan,' the group said in a statement.
The process willhappen in a set of steps, beginningwith aS440K offer by Capespan Group Limited to acquire the entire issued share capital of Capespan Group Holdings Limited.
After the successful conclusion of the S440K offer, Outspan and Unifruco will declare their shareholding in Capespan as a distribution in species to their shareholders, the group said,who will then hold a direct interest in the Capespan Group. Outspan and Unifruco will in turn be wound up.
Conditional upon the successful completion of the shareholding restructuring, Capespan Group together with one of its subsidiary's will make an offer to repurchase up to 25 per cent of the issued share capital of Capespan Group at R1.25 per share. The share repurchase will be funded out of the Group's surplus cash.
'It `the move`will allow the unlocking of shareholder value and increase share tradeability in the Group,' said Capespan Group's managing director Neil Oosthuizen. 'Furthermore, the trading restrictions of Unifruco shares will be removed. Reducing administrative and other costs associated with the former three-tiered shareholding structure is of course a big plus factor. We also hope to further improve corporate governance.'
