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percent stake in the retail furniture group following a protracted shareholders’ wrangle with former chairman Mr Oliver Chidawu.
The offer is meant to satisfy the regulatory requirements of the ZSE which stipulate that any company or investor with shareholding exceeding 35 percent should make a mandatory offer to minorities.
Mr Nyambirai increased his stake in Pelhams after buying 358 207 502 shares at US0,7c in a deal worth US$2,5 million in October 2011. But he only assumed control of the company in September last year after the High Court awarded him ownership of 35 percent shareholding which Mr Chidawu was challenging.
Mr Nyambirai, through TN Asset Management and a subsidiary of LSH, bought the shares from Jayesh Shah, which the Indian businessman was holding as security for a US$3 million loan advanced to Mr Chidawu. Mr Shah sold the shares to TN Asset Management after Mr Chidawu failed to repay.
According to ZSE regulations, Mr Nyambirai should offer the minorities at US0,7c per share, the same price he bought his shares. But sources said the lawyer-cum-businessman may contest paying such a price since it took him almost a year to gain full control of the company due to disputes.
As a result of the fights, the share price has been falling and it closed at US0,09c after trades yesterday. And at US0,09c, Mr Nyambirai would be required to offer minorities at a price eight times higher the market price. Broadway Investment owns about 15 percent in Pelhams, Old Mutual Life Assurance holds 14 percent and 16 percent is a free float.
“The Zimbabwe Stock Exchange has since written to Lifestyle Holdings advising it to make a mandatory offer,” said one source. “It is a statutory obligation that the company has to fulfil but now that it Pelhams has lost its value due to shareholding disputes, the offer would be now at a premium.”
Mr Nyambirai said in an interview yesterday the matter was under discussion with the stock exchange. “They have their views, but what I can say now is that we are talking,” said Mr Nyambirai.
ZSE chief executive Mr Alban Chirume confirmed the matter in interview yesterday, saying: “We are talking with the relevant people involved and once the process is complete, we will make an announcement.”
Online Reporter