Education training group ADvTECH has announced its intention to tighten up its structure and merge its training, employment and technical divisions to trade as a single entity, minus its N shares (non- or low-voting shares).
The board explains the rationale behind the deal is "to reduce the number of entry points into the ADvTECH group from five to one and is line with the international practice of eliminating complex control structures. In addition, the proposed restructuring is likely to unlock value for ADvTECH shareholders."
The company feels that value will be unlocked by eliminating the discount at which the ADvTECH shares are trading relative to underlying company value. It will also eliminate the discount at which the N shares trade relative to the ordinary shares, and increase liquidity of the group`s shares.
Murray Benadie, ADvTECH Multimedia GM, says there will be no impact on operations and that the proposed restructuring was a financial decision that merely affected the way the company traded on the JSE.
At 11am on Friday, the ADvTECH share was trading at 235c, down 4c from last night`s close of 239c.
ADvTECH will release the details of its proposed restructuring only after it publishes its year-end results toward the end of February.
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