Industrial equipment supplier Howden Africa is considering delisting from the JSE.
In a statement published on Wednesday, Howden says its board of directors has been considering the continued viability of the company’s listing on the main board of the JSE.
It has considered, besides other aspects, the opportunity to provide an exit for Howden minority shareholders from shares that are tightly held with relatively poor liquidity and analyst coverage.
Additionally, the board has considered that 55.39% of the shares in Howden are held by its ultimate holding company, Colfax Corporation, which itself is a listed entity and duplicates regulatory processes and associated costs.
Equity capital is not expected to be raised in the near future, nor is the use of a listed share scheme to incentivise staff.
Further, the board noted that the completion of a black economic empowerment transaction within the Howden group would be “significantly easier to achieve in an unlisted environment”.
Having considered these, and other, relevant factors, Howden’s board has resolved, in principle, to proceed towards seeking a possible delisting of Howden from JSE by means of a share buyback implemented through a scheme of arrangement to minority shareholders.