Listed computer distributor Mustek seems set to stay listed on the JSE for now, after the company yesterday withdrew a cautionary announcement.
Last year, Mustek said a consortium, led by CEO and founder David Kan, as well as the Trinitas Private Equity Fund, had put a non-binding offer on the table to buy out shareholders for R5.55 a share.
If the deal had been successfully concluded, Mustek would have been delisted from the JSE and Kan would have increased his holding from 10% to 50% plus one share.
Mustek's shares slumped yesterday, after the cautionary was withdrawn, dropping 30c, or 5.88%, to close at R4.80. Its lowest share price in the past 52 weeks was R3.40, on 2 September last year, and the highest was R5.25 on 15 February.
In an announcement to shareholders yesterday, Mustek said the cautionary announcement relating to the proposed buyout and delisting had been withdrawn. It said shareholders no longer needed to be cautious when trading stock.
Mustek first told the market it was in talks on 15 December. It repeated the cautionary in January, February, April and May. Mustek did not disclose reasons for the withdrawal of the cautionary.
In April, Kan told ITWeb the planned deal had been delayed until after the new Companies Act comes into effect. At the time, Kan was unable to provide new timelines, but said he didn't anticipate shareholders objecting to a later implementation date.
The delays resulted in the consortium having to pay penalties of R5 million for each month the deal went beyond May.
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