United Service Technologies (Uniserv) has proposed a merger that could see its JSE listing come to an end if its shareholders approve the deal.
Uniserv`s only asset is a 30% shareholding in Nasdaq-listed UTi Worldwide, which, in addition to providing traditional logistics services, supplies proprietary information systems enabling Internet access and Web-based ordering.
There are about 5.89 Uniserv shares for each UTi share held by Uniserv.
The group says that in terms of that equivalency ratio, its shares have for some time traded at a significant discount to the value implied by the UTi share price. The Uniserv board undertook an extensive investigation into the group`s options to eliminate this discount and unlock value for shareholders.
The mechanism arrived at is a plan of merger with Supply Solutions, which will cease to exist once the merger is carried out.
In addition, Uniserv shares held by shareholders other than PTR Holdings, owned by Uniserv`s founders, will each be converted into a right to receive a consideration in terms of a formula based on the quotient of 90% of the UTi shares and of the equivalency ratio.
Shareholders are to vote on the proposals on 15 December. Should at least 50% vote in favour, the Uniserv share will be suspended on 24 December and the listing will be terminated on 4 February.
The Uniserv share was trading unchanged at R57.75 this morning. Yesterday the share rose by 25c or 0.4%.
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