The CS Holdings (CSH) share appears to have settled at the price at which Reunert is to offer to buy out minorities, at least until more details of the offer are released.
Reunert announced on Monday that it would offer to buy out other CSH shareholders at 35c a share. The full details of the offer are yet to be disclosed but it is understood that the intention is to delist CSH from the JSE.
Also unclear is what will happen to CSH`s black economic empowerment initiatives once an acquisition is completed.
Worldwide African Investment Holdings owns a 25% stake in CSH.
WAIH CEO Thuli Zuma, who is CSH`s non-executive chairman, has reportedly resigned his post at WAIH, although his company declined to comment on that this morning. Zuma himself was unavailable for comment.
What will happen to the WAIH shareholding is one of the matters about which the market is awaiting clarification, analysts say. WAIH paid substantially more than the current offer price for its stake.
Analysts are divided on whether 35c a share represents a fair offer for the company, although most polled say that minorities may be getting shortchanged.
They say that despite recent allegations relating to accounting practices, the future potential of CSH is not reflected in the current share price.
The CSH price was unchanged at 35c on the JSE this morning after 35 000 shares changed hands.
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