CCN Holdings is planning to delist from the JSE after buying out its minority shareholders at 115c a share.
The company, which operates in the contact centre space, says the offer price represents a premium to the share`s market price.
The weighted average price of the CCN share for the 60 trading days to 16 March, when the group published a related cautionary notice, was 88c. The share closed at 99c the day before the cautionary was published.
The share price soared after the company made the announcement this morning. By midmorning the share was trading at 110c, up 13c or 13.4% from yesterday`s 97c closing price.
However, the price increased with only 500 shares having traded - an illustration of one of the reasons the CCN board is pursuing the delisting.
It says the company does not comply with the spread requirements of a JSE main board listing, which requires there be at least 500 public shareholders and a minimum of 20% of the share capital to be in public hands.
The controlling shareholders - the executive directors and a pool consortium - hold about 87% of the issued shares.
"Furthermore, the board is of the opinion that management time related to the continued listing of CCN on the JSE is not justifiable," it says.
With the controlling shareholders waiving their rights to participate in the offer, shareholders owning 48% of the remaining shares have undertaken irrevocably to vote for the necessary resolutions and accept the offer.
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