Swedish group Saab`s local subsidiary has surprised the market by increasing to R2 a share its offer to buy Grintek shares.
By mid-morning today the Grintek share had rocketed to 198c in response, up 12c or 6.5% from yesterday`s close.
An offer of R1.90 a share had been on the table until Saab SA announced after the market close yesterday that it had informed the Grintek board of its increased offer.
It said also that the board had approved the increase.
The increase means that Saab is set to pay R333 million for the 56% stake it is seeking, up from R316 million before.
Saab already owns 14.4% of Grintek, and it is not looking to buy the 29.7% held by Kunene Finance Company and Kunene Technology Investments.
Shareholders are to vote on the deal at a scheme meeting scheduled for next Monday.
Saab says it has received, following the increase, irrevocable commitments to vote in favour of the scheme from shareholders owning 64.75% of the scheme shares.
These are Old Mutual Life Assurance Company (29.33%), Investec Asset Management (10.2%), Stanlib Asset Management (8.04%), Sanlam Investment Management (6.9%), Sanlam Life Insurance (6.88%), Old Mutual Unit Trusts (2.35%) and Community Growth Fund (1.05%).
The Grintek share is scheduled to be suspended on 9 May and delisted from the JSE on 17 May.
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