DURBAN – RECM AND CALIBRE (RAC) has increased its stake in Astoria Investments to 78.45percent after acquiring more than 60million shares in the investment company for R2.40 a share.
RAC previously held a 29.4percent stake in Astoria Investments.
The shares were acquired through its wholly owned subsidiary, Livingstone Investments.
The group said the shares were acquired from Hampden Capital, Legae Peresec and various portfolios managed by 36ONE Asset Management for an aggregate cash consideration of R144.72million.
RAC said its majority stake in Astoria allowed it to impose an obligation on RAC, acting through Livingstone, to make a mandatory offer to acquire all the remaining voting shares of Astoria, not already owned by RAC, under rule 33 of the Mauritian Securities Takeover Rules.
Astoria is an investment company which has primary listings on the Stock Exchange of Mauritius and the Alternative Exchange of the JSE and a secondary listing on the main board of the Namibian Stock Exchange.
“With a larger shareholding, RAC will be able to provide its capital allocation framework to the Astoria board of directors for implementation,” the group said.
RAC added that as a result of this transaction, Astoria would become a subsidiary of RAC.
“The board hereby confirms that the constitution of Astoria will not frustrate the company in any way from compliance with its obligations in terms of the JSE listing requirements,” the group said.
At end September the asset value (NAV) per Astoria share was $0.174 (R2.60). Astoria funds were deployed as 53.8percent in cash, 34.7percent in private equity and 11.5percent in listed global equities.
In the six months to end of June, Astoria reported an NAV of $23.03m, and Astoria generated a net loss after tax of $464000.
RAC shares closed 0.14 percent higher at R14.80 on Friday.