Shareholder rejects R120

BARLOWORLD: CONSORTIUM'S OFFER IS UNDERVALUED, ACCORDING TO SILCHESTER

- Roy Cokayne

K-based Silchester International Investors, a major investor in JSE-listed Barloworld, does not believe the offer from the consortium that is proposing to buy out all the ordinary shares in the JSE-listed group is "compelling".

A firm offer by the consortium last week values Barloworld at R23 billion and comprises a cash offer of R120 per share that will not be reduced by the R3.10 per share dividend already declared by Barloworld on 22 November.

However, Silchester director Tim Linehan said the firm is unwilling to tender its Barloworld shares unless the consortium offers at least R130 per share.

Linehan said a full privatisation of Barloworld is unlikely to succeed without the support of the group's primary shareholders, including Silchester.

Silchester owns 33 531 795 ordinary shares in Barloworld, which represents 17.7% of Barloworld's issued share capital.

The consortium comprises Entsha and Gulf Falcon Holding Limited, a wholly-owned subsidiary of the Zahid Group, a multidisciplinary conglomerate headquartered in Saudi Arabia and an effective 18.9% shareholder in Barloworld.

Entsha is a newly incorporated company that is ultimately owned by The Katlego Le Masego Trust, an inter vivos trust established for the benefit of Barloworld CEO Dominic Sewela and his family.

The scheme of arrangement requires the support of 75% of eligible voters who participate in the meeting-in their own capacity or by proxy-for it to succeed.