adminADC chairman Mr Alastair Newton said in an interview yesterday that the offer was meant to satisfy the regulatory requirements by the Botswana Stock Exchange which stipulates that any company or investor with shareholding exceeding 35 percent should make a mandatory offer to minorities.
ABCH has a primary listing on the Botswana Stock Exchange and a secondary listing on Zimbabwe Stock Exchange. After the rights offer, ADC raised its stake in ABC to a controlling 51 percent from 26 percent.
“It is a statutory obligation that we have to fulfil as required by the Botswana Stock Exchange,” he said.
The offer price shall be BWP 5,05 per share for shares registered on the BSE US060c per share for shares registered on the ZSE. ABCH shares rose by US10c to from US60 to US$70c on ZSE yesterday.
“For Zimbabwe register, I don’t see people taking the offer, but they (ADC) would have fulfilled the obligation,” said one stockbroker. But assuming that shareholders take the offer, ADC will buy a combined 49 percent of the shares held by minority shareholder and de-list from the stock exchanges.
“Irrespective of the outcome of the mandatory offer, this week’s first ever joint board meeting was an important step forward in the consolidation of ADC and BancABC as we launch our ambitious drive towards the creation of a pan-African banking group,” said Mr Newton in a statement.
ADC’s Extraordinary General Meeting resolved the transformation of the company into a stock corporation (AG) in January 2013 to reflect the strategic enhancements in the corporate structure. ADC has spent the last months preparing the legal documentation as well as the 2012 annual report that will be released at the beginning of June with the first time consolidation of BancABC.
In order to complete the registration of the AG in the commercial register, the company is required to renew its listing on the stock exchange.
ADC CEO said: “In order to remain a fast moving player during our envisioned expansion in the sub-Saharan African banking market over the next years, we have decided to apply for a re-listing in the entry standard to increase operational flexibility and reduce costs.
“I would like to assure all current and future shareholders that the shares will remain tradeable at all times and reporting standards will remain high.” The company expects to list the AG in the entry standard in the second half-year of 2013.
Online Reporter