Shares in integrated media group Primedia jumped more than 5% in mid-morning session on Thursday following a buyout offer.
At 10:01am, Primedia’s N shares were up 5,30%, or R1,25, to R24,85 and Primedia’s ordinary shares soared 5,77%, or R1,40, to R25,65.
“The market seems to like the offer. It’s slightly better than the original proposed offer,” one analyst said.
A consortium comprising the Mineworkers Investment Company and the Kirsh family has offered holders of Primedia’s ordinary shares R26,67 per share and holders of N shares R25,62 per, valuing the company at just over R6-billion.
The consortium, acting through the Red Pen 2 General Trading (Newco), plans to also terminate Primedia’s listing on the JSE if the deal is approved.
Primedia’s two largest institutional shareholders, Old Mutual Investments Group and Coronation Asset Management, have undertaken to vote in favour of the offer.
In December last year, the consortium said it had intended offering shareholders R25,50 for each ordinary share and R24,50 for each N share. – I-Net Bridge