Maxtec`s board has decided to seek the suspension and subsequent termination of the group`s JSE listing following an offer by certain staff and management to buy the company for just 1c a share.
The offer is substantially below Thursday`s closing price of 7c. The share price fell by 5c to 2c yesterday and was untraded this morning.
The staff making the offer have formed an empowerment company, C&MA Shelf 72, which has agreed that no offer will be made to the controlling shareholders, who currently hold 48.91% of Maxtec`s shares.
Maxtec says the reasons for the offer and delisting include the negative sentiment towards small-cap stocks, which will preclude any rapid recovery in the share price.
Management time and expense related to the listing can also not be justified in view of the group`s market capitalisation.
"Furthermore, the offer by the empowerment company, C&MA Shelf 72, which has as its shareholders certain members of Maxtec`s staff and management, will genuinely empower and uplift previously disadvantage Maxtec employees at a grassroots level," it says.
Shareholders are scheduled to meet on 4 February. If they approve the relevant resolution, the share will be suspended on 20 February and the listing will end on 2 March.
C&MA`s offer to minority shareholders will open on 6 February and close on 27 February.
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