South African brand management group Barloworld said on Wednesday that it plans to repurchase its own ordinary shares held by its wholly-owned subsidiary Barloworld Investments.
Barloworld Investments acquired the ordinary shares in Barloworld in 2000 and 2003 and holds a total of 19 090 900 shares — or 8,3% of Barloworld’s entire ordinary issued share capital.
The repurchase of the treasury shares is being conducted in order to simplify Barloworld’s capital structure, it said.
Following their acquisition, the shares will be cancelled as issued shares and restored to the status of authorised shares.
Barloworld and Barloworld Investments entered into a share acquisition and disposal agreement on April 5, in terms of which Barloworld will, subject to the approval of Barloworld ordinary shareholders, acquire from Barloworld Investments the treasury shares. The acquisition will occur on or about May 22 and it is intended that the shares will be acquired at market value, the group said.
The specific repurchase will have no financial effect on Barloworld or its shareholders, other than in respect of transaction costs that are normally incurred in transactions of this nature. As the specific repurchase is intra-group, no cash will be utilised for the specific repurchase, other than those transaction costs, it added.
The repurchase is subject to the passing at the general meeting — to be held on May 18 — of the special resolution necessary to implement the transaction and the subsequent registration by the registrar of companies. ‒ I-Net Bridge