Listed computing channel company Mustek has issued a cautionary announcement of a possible buy-out, and subsequent delisting from the JSE, by a consortium led by its CEO David Kan and the Trinitas Private Equity Fund.
The non-binding offer from the consortium proposes to sell all its shares in the company for a cash price of R5.55 per share, and the delisting of Mustek's shares from the JSE.
Mustek's current share price is R4.25, with a market capitalisation of R465.6 million. The company is rivalled by Pinnacle, the largest channel company on the JSE, with market capitalisation of R1.12 billion.
Kan explains that, while there are not many motivating factors for the move, the main reason to delist the company stems from his belief that the Mustek's share price has been trading below its actual worth for far too long.
He believes the buy-out will be a positive for the company, as well as its shareholders.
The company's board is engaged in discussions with the consortium with a view to facilitating the conduct by the consortium and/or its funders of a due diligence investigation of the company.
Meanwhile, independent of the consortium, holders of an additional approximate 45% of the issued share capital of the company have pledged their support to the consortium for the buy-out and delisting at the proposed price.
Kan, directly or indirectly, controls approximately 10% of the issued share capital of the company.
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