Softline shareholders look set to accept the R2 offer from UK-based Sage Group when they vote tomorrow, after a six-month tussle started by management`s initial offer to delist the company.
Trading in Softline shares on the JSE this morning was subdued with the price little changed from Friday`s close of 195c, which is 5c below the offer price.
"It is as close to the offer as it can be and we don`t expect any major moves," says Julian Henry, a dealer at stockbroker Barnard Jacobs Mellet. "Softline is considered a penny stock and there are not many institutional orders for the share, although some could be shareholders in the company."
The fight for Softline was kicked off when a consortium, including management and merchant bank Investec, put together an offer to buy out minorities for 130c per share. At that time, the share price was trading around 85c.
Former Softline director Ivan Ferrer entered the fray with Dutch partner Exact with an offer of 145c per share. However, Ferrer decided not to pursue Sage`s final offer of 200c following a due diligence audit.
Piety Viljoen, CEO of asset manager Regarding: Asset Management, says it is a pity that Softline will be delisted, but that the offer seems to be reasonable.
"At least management is not stealing the company from the shareholders," he says. "It also shows that there is a level of awareness that shareholders are no longer prepared to let their companies go for a song."
Viljoen has been an outspoken critic of the rush of delistings since the deflation of the IT bubble. He was a prime player in the Comparex saga, which saw the company restructure its board and sell its loss-making European operations.
"This case also illustrates just how undervalued SA shares are and a very good company will now pass into the hands of an overseas owner," he says.
Sage Group is a supplier of accounting and business management software solutions and related products.
Softline has consistently refused to comment on the bidding process. Its management did submit a letter to the board to the effect that it is considering making an offer to shareholders to buy their shares for no less than 180c a share - an offer it has never increased.
Share
