Listed computer distributor Mustek could be de-listed from the JSE by the middle of the year, if a proposed buyout by a consortium is successful.
In December, Mustek told shareholders a consortium led by its 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.
The company's shares closed at R5.10 yesterday, an 18c, or 3.66%, gain on the day.
Kan says he hopes to have the deal wrapped up by May, although the transaction is only realistically likely to go through at the end of May.
Mustek will have a board meeting within the next week, which will result in the appointment of an independent body to conduct due diligence and then provide an opinion as to the fairness of the valuation, says Kan.
Kan explains this process will be followed by a firm offer and a shareholders' meeting to vote on the deal. By mid-December, stockholders owning 45% of Mustek, who are not members of the consortium, had pledged their vote in favour of the deal.
Once the transaction has been finalised, Mustek will be de-listed from the JSE. Kan says he will have a controlling stake in the company, with 50% plus one share. Currently, he holds 10%.
In Mustek's December announcement to shareholders, it pointed out that the non-binding expression of interest did not amount to a firm offer and, as a result, the consortium may not make a firm offer. This would depend on the outcome of the due diligence process.
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