The Competition Commission has approved Polanofield’s proposed acquisition of JSE-listed Distribution and Warehousing Network (Dawn) at R0.01 apiece.
Polanofield – a shelf company that was recently bought by its controllers specifically for the purposes of the proposed transaction – plans to delist Dawn, which has been unsuccessful in resolving its liquidity constraints.
Dawn manufactures and wholesales quality branded hardware, sanitaryware, plumbing, kitchen, engineering and civil products to buying groups, independent plumping merchants and hardware stores.
It also supplies pipes and fittings used in water infrastructure.
Dawn last week advised its shareholders that it expects its headline loss per share (HLPS) for the six months ended September 30, to deteriorate by between 174% and 188%.
It expects to report a HLPS of between 37.6c and 39.5c, compared with the HLPS of 13.73c reported for the six months ended September 30, 2017.
The loss per share (LPS) will reflect a deterioration of between 98% and 112% to between 38.5c and 41.2c, compared with the LPS of 19.45c reported for the prior period.