The long-running saga of MGX`s acquisition of EC-Hold finally came to an end yesterday when MGX`s successor, Metrofile, closed its offer to EC-Hold shareholders.
Owners of EC-Hold shares as at 11 October 1999 were offered R2.40 per share. The offer closed at noon.
Metrofile says in a notice to its own shareholders that the payment for the shares will be posted by 28 April to EC-Hold shareholders who validly accepted the offer.
The notice does not say how many acceptances were received and CEO Graham Wackrill, who could not be reached this morning, had not returned calls by the time of writing.
The Securities Regulation Panel`s executive committee ruled in 2001 that MGX and the Mandy Rebecca Price Trust had acted in concert when MGX acquired EC-Hold, resulting in a combined stake that exceeded the 35% level at which a compulsory offer to minorities is triggered.
MGX had offered EC-Hold shareholders R1 a share, but the full panel of the SRP ruled in 2002 that the shareholders be offered R2.40.
Despite losing an appeal, MGX refused to pay the amount, maintaining that it had done no wrong. The SRP then took the matter to the High Court.
EC-Hold has subsequently been delisted, deregistered and liquidated, and MGX has undergone a change of management and name to Metrofile Holdings.
However, the current Metrofile board decided to bring the matter to an end and announced in March an offer to buy, for R2.40 each, the shares owned by EC-Hold shareholders as at 11 October 1999.
The offer, which opened on 30 March, closed yesterday.
Metrofile received irrevocable undertakings not to accept the offer from former MGX chairman Ronnie Price and any interest or shareholding under control of him or any member of his family.
The group has stressed that the offer did not imply an admission that any concert activity took place, or that there was an obligation to make a mandatory offer.
The Metrofile share, which rose 5c or 3.7% to close at 140c on the JSE yesterday, was trading 2c up at 142c this morning.
Related story:
Metrofile makes EC-Hold offer
Share
