Technology education and staffing group Advtech`s share price soared 23.7% on the JSE yesterday on an announcement it had received a conditional written offer to buy its businesses for R185 million in cash.
The value of the conditional offer, from private investor Jonathan Beare and private equity company Calajero Investments, which is controlled by former Brait Investment Bank CE Mark Barnes, equates to 50c an Advtech share.
Barnes is a major investor in Peregrine Investments, which has a 10% stake in Advtech and which was called in last year to review Advtech`s focus.
The review was intended to assist Advtech management to determine the group`s positioning to sustain future growth.
Barnes says he handed the offer, which he regards as a serious one, measurable in cash, to Advtech chairman Brian Buckham on 4 January, when the share was trading at 27c.
He says he did not see the Peregrine report, and Beare`s connection to Peregrine does not have any relation to the offer, which was simply a result of the two seeing an investment opportunity.
The offer includes a reinvestment option for shareholders, giving them the opportunity to buy back 25% of the company.
He says while it is premature to discuss plans in detail, "Advtech has some very good assets which we would like to develop. There may be buyouts and acquisitions later on, but it really is too early to discuss that at this stage".
Although rumours about the offer had been circulating for a while, the Advtech share price rose from 38c to 47c yesterday, despite the fact that the announcement was published on the JSE`s news service less than a half-hour before the close.
According to Advtech, the offer contains numerous conditions, several of which it describes as "onerous in nature".
Because of this and "a number of matters requiring further clarification", the two parties have begun talks, the company adds.
However, Barnes says he has had no response from the Advtech board, and no discussions have taken place.
He says the offer, which is only a page-and-a-half long, is straightforward. "I have done many deals like this one over my career, and I don`t regard it as onerous or complex," he notes.
Advtech adds that "other indications of interest have been communicated to Advtech. These initiatives may ultimately result in a firm intention to make an offer, in terms of the securities regulation code, being submitted to the board of Advtech."
Advtech MD Renney Plit was out of the office today and financial director Nico Booysens was in a meeting and unable to comment.
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