Embattled Gijima plans to continue its turnaround in an unlisted environment after major shareholder Yebo Guma offered to acquire all the remaining shares it did not already own in the JSE-listed information and communication technology (ICT) group.
Guma would pay Gijima shareholders 220c a share, which represented a 10% premium to the price of the rights offer completed during December and a 31% premium to the 30-day volume-weighted average price of 168c as of Tuesday.
The company, which intended to delist Gijima from the JSE, said subsidiary Guma ICT’s underwriting of the R100-million rights offer had pushed the group’s stake from 46.7% to 88.4%, leaving the company with a small remaining free float of 11.6%.
“Given the small remaining free float and the current status of Gijima’s turnaround, which is ongoing, Guma believes it is in the best interests of the company to be held 100% by the Guma Entities and to delist,” Guma said in a statement.
The deal remained subject to shareholder approval and the requisite approvals from the JSE and the Takeover Regulation Panel.
Gijima chairperson Robert Gumede has an interest in and is a director of all the entities within the Guma group, including Yebo Guma Investments, Guma ICT, Guma Tech, Guma Support, Guma Investment Holdings and Guma Tech Group.