Comparex`s employee share option scheme has voted against the management buyout of the group`s European operations, but analysts say this means very little.
"The three asset managers (Allan Gray, Sanlam and Investec) support the buyout and that`s enough for it to go through," one analyst says. Shareholders are scheduled to vote on the buyout on Wednesday.
Comparex announced in August that it was selling its European operations to management, including former Comparex CEO Rian du Plessis, for 8.5 million euros. The price was increased to 10 million euros last week after Comparex received another offer for the business.
The original announcement was made after three institutional investors - Allan Gray, Sanlam and Investec - staged a boardroom coup, ousting several non-executive directors and replacing them with their own nominees. That move resulted from dissatisfaction with the fact that Comparex was sitting on a cash pile of about R2.4 billion.
An analyst says the fact that the employees` share option scheme has voted against the deal will serve only to raise public awareness of unhappiness among staff. "But it`s not going to stop the sale," he says.
The Comparex share reacted negatively to the news, losing 20c or 3.64% to trade at 530c on the JSE early this morning.
"Peter Watt [Comparex Holdings acting CEO] has been running the business and he says it`s the best deal for shareholders," one analyst says.
"The asset managers also say it`s in shareholders` interest. Maybe it is, but you have to wonder whether it is in the shareholders` interest or are they enriching themselves?"
Comparex`s executives were in a meeting this morning and unavailable for comment.
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