Advtech and Nedcor Investment Bank have rejected the R185 million offer made by a consortium to acquire Advtech, saying the proposal did not represent fair value.
A private investor, Jonathan Beare, and private equity company Calajero Investments, which is controlled by former Brait Investment Bank CE Mark Barnes, made an offer to purchase the business of technology education and staffing group Advtech on 4 January.
The offer of R185 million equates to 50c an Advtech share. On news of the offer, the Advtech share price jumped from 38c to 48c on the day.
The price subsequently dipped to close trade on Friday afternoon at 44c.
Advtech`s board, along with Nedcor Investment Bank, have dismissed the offer, saying it did not represent fair value for the businesses, and have lodged a counter-proposal with the consortium and other interested parties.
Barnes says the consortium is pushing for a swift resolution to the counter-proposal, which he sees as a genuine offer.
The consortium will meet later this afternoon to thrash out the offer. Barnes says that if the Advtech board remains unhappy with the terms, he is still able to take it to the Advtech shareholders for their approval.
Online broker, PSG Online has advised investors to "hold" their shares until the matter has been finalised.
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