Property group Gilboa Properties plans to change its name to Absolute Holdings and transfer its listing from the main board of the JSE Securities Exchange (JSE) to the Alternative Exchange (AltX) in 2005, in line with its change in focus from a property-development company to tile wholesaling and retailing, as well as mining.
The move follows Gilboa’s acquisition of Absolute Tiles in August 2003. Absolute Tiles imports and sells tiles to contractors and the general public, both locally and internationally, as well as owning a 49% stake in Absolute Colleccion, which mines slate, dimensional stone and quartzite.
Announcing the changes along with its final results for the year to the end of June 2004 on Wednesday, Gilboa also revealed that the tile business helped to lift the company’s revenue almost tenfold for the year, to R22,3-million from only R2,6-million a year earlier.
Although the group still recorded an operating loss of R2,5-million compared with a loss of R1,5-million in 2003, its headline loss per share narrowed to 0,55 cents from 0,89 cents.
At the same time, its net asset value per share improved to 0,22 cents from a negative 2,5 cents, with total assets increasing to R24,1-million from R6,9-million a year earlier.
No dividends were paid or recommended for the 2004 year, as was none in 2003.
Gilboa said that subsequent to year-end, it had agreed to acquire the majority 51% stake in Absolute Colleccion owned by black empowerment group Calulo Investments via the issue of 100 000 000 new Gilboa shares at 12 cents per share, for R12-million.
The deal is still subject to shareholder approval at a meeting set for January 20.
Gilboa has also reached a settlement with the Industrial Development Corporation (IDC) regarding a suretyship over one of Gilboa’s former subsidiaries, the company said.
Major shareholders will purchase the IDC claim against the former subsidiary from the IDC through the transfer of existing shares in Gilboa, plus Gilboa will make payment of R500 000 in settlement of its suretyship via the issue of shares for cash.
Despite the settlement, Gilboa said its directors have decided to institute criminal proceedings against the former subsidiary’s directors.
Gilboa’s share price was 14% or 1 cent higher on the news, last trading on the JSE at eight cents from seven cents at Tuesday’s close, with only one transaction having been recorded so far. — I-Net Bridge