South African investment holding firm Hosken Consolidated Investments’ (HCI) shareholders on Thursday approved a mandatory offer by HCI’s wholly-owned subsidiary, Mercanto Investments, to acquire all — or part — of the issued shares in the capital of Johnnic that HCI and its subsidiaries do not already own, HCI said in a statement on Thursday.
HCI, which owns e.tv and Mettle, already owns about 40% of Johnnic after upping its stake by acquiring almost 10% from Gold Reef Casinos last month.
Johnnic and HCI are involved in an ongoing tussle for the control of Tsogo Sun’s parent company, Tsogo Sun International, which owns Montecasino and the Southern Sun hotel group.
As a result of a possible conflict of interest, Johnnic shareholders earlier this month refused HCI bosses — John Copelyn and Marcel Golding — seats on the board.
The leisure and gaming company changed focus after unbundling — amounting to R2,6-billion — of its entire 62,5% stake in Johnnic Communications.
Johnnic has decided to seek independent guidance on the offer due to the fact that the highest price paid by HCI for the leisure firm shares has been 975 cents per share, which it feels undervalues Johnnic.
At 3.28pm, Johnnic stock on the JSE Securities Exchange was trading at R11, up 2,8% from Wednesday’s close of R10,70 per share. — I-Net Bridge