The controlling shareholder of listed fast food group Nando’s (NDS), Brozent Holdings, has made a formal offer of 70 cents per share to Nando’s minorities, with the aim of de-listing the company, the group announced on Wednesday.
Nando’s shares rose 6,5% or four cents on the news, last quoted at 65 cents from 61 cents at Tuesday’s close.
Brozent, a consortium of the Brozin and Enthoven family interests, has joined with several other companies and members of Nando’s management to make the offer to minorities.
They already hold approximately 72% of Nando’s issued share capital, with another 12% held by Brimstone Investment Corporation (BRT) (the largest minority investor) and 5% by Rand Merchant Bank (RMB).
The offer price has been raised since the Board of Brimstone approved the disposal of its stake for 65 cents per share last year, while RMB has also expressed its willingness to consider selling its stake given the illiquidity of Nando’s shares.
The offer is conditional on approval by 75% of minority shareholders, as well as approval from Brimstone shareholders and the requisite regulatory authorities.
Brimstone said in a separate announcement on Wednesday that shareholders representing 50,3% of the votes to be cast at the shareholder meeting had given irrevocable undertakings to vote in favour of the sale of its Nando’s stake.
A timetable for the approvals and de-listing is set to be released next month. – I-Net Bridge