The Financial Service Board’s directive ending OTC trading has brought consternation to the hundreds of minority shareholders of companies like Agri Voedsel, KaapAgri and Capespan, whose shares trade over the counter.
Agri Voedsel’s sole asset is a 30% stake in Pioneer. Zeder owns 48.5% of the company and has obtained Competition Commission approval to acquire the balance. The offer will be in the form of Zeder shares in the ratio of 16.2 Zeder shares for every one Agri Voedsel share.
This is based on an underlying value of R99 per Agri Voedsel share and R6.11 per Zeder share. Zeder will have to issue about 450m shares to complete the transaction.
While Zeder shareholders and Agri Voedsel shareholders (excluding Zeder) are to vote on the proposed transaction it seems likely that the deal will be approved.