Shareholders of Australian-listed grocery and liquor wholesaler Metcash Trading have approved resolutions that will facilitate the group’s plans to buy the 60% stake in Metcash held by South African-listed holding group Metoz, Metcash confirmed on Friday.
Metoz (previously known as Metro Cash and Carry or Metcash) was left with its stake in Metcash Trading as its sole asset after Metcash’s South African and African operations were bought out and taken private by management and a black economic empowerment consortium for R1,3-billion.
Metcash’s Australasian businesses comprise three trading divisions — IGA Distribution, Campbells Cash & Carry and Australian Liquor Marketers.
Now, Metcash is proposing to buy out Metoz’s stake for Aus$2,92 per share as part of the group’s wider plans to undertake a capital reorganisation and acquire rival retailer Foodland’s Australian business.
On Thursday, Metcash shareholders supported all of the group’s proposals, including capital raising, the issuance of a new class of shares to Foodland shareholders and the funding of a new entity that will buy the Metoz stake.
As Metoz’s only asset is its interest in Metcash, the move paves the way for Metoz to be de-listed from the JSE Securities Exchange (JSE) once the sale is finalised.
Metcash CEO Andrew Reitzer said: “The board of Metcash is delighted with the overwhelming support of our shareholders for the implementation of our strategy to return the group to Australian ownership and undertake the acquisition of Foodland.
“Metcash shareholders were very keen to be presented with an opportunity to share in a strong, combined business with a clear strategy backed by an excellent management team.”
Metoz shares were last quoted on the JSE at R2,72, down from R2,73 at Thursday’s close. — I-Net Bridge