The Securities Regulation Panel (SRP) has exempted Treacle Venture Partners from making a mandatory offer to minorities if a repurchase of shares by ERP.com causes Treacle`s stake to increase to more than 35%.
At a meeting in March, ERP.com`s shareholders granted the group the authority to repurchase issued shares. One of the implications of a repurchase could have been that Treacle, which owns 24.6% of ERP.com, would have increased its stake to more than 35%.
Usually, this would trigger a mandatory offer to minority shareholders.
However, ERP.com says the SRP has ruled that if Treacle`s stake increases to more than 35% purely as a result of ERP.com buying back its own shares, it will not have to make such an offer.
Treacle`s stake in ERP.com increased to its current levels after it bought up part of Ronnie Price`s 25% shareholding, which he sold earlier this year.
Price`s exit also resulted in Investec Asset Management owning about 10% of the company.
The ERP.com share price was unchanged at 95c on the JSE this morning.
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