M&R’s shares rise 50% as Germany’s Aton plans buyout
26th March 2018
By: Simone Liedtke
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In a separate announcement, Aton, which has a diverse portfolio of investments in the mining, engineering, aviation and health technology sectors, has advised that it has obtained an irrevocable undertaking from investment service company Allan Gray, acting on behalf of its clients, representing about 10.9% of M&R’s ordinary share capital, to accept the proposed offer, if made.
In addition to the significant value that the offer represents to M&R’s shareholders, Aton believes the offer will have a positive impact on M&R in the long term and be beneficial for a range of stakeholders, including M&R’s management and employees.
Aton further explained that the proposed offer has strong strategic and commercial impetus, and that this transaction would include the M&R business portfolio into that of an international player of strength.
“This will enhance the capability of South Africa’s underground mining service industry to compete in international markets through leveraging Aton’s relationships with customers and other stakeholders. Importantly, it will create a strong platform for geographic expansion throughout Africa and globally,” the company said in a statement on Monday.
Aton states that the offer represents a vote of confidence in the South African economy by a large multinational German investor and that it will constitute a significant source of foreign direct investment (FDI), as it represents potential FDI of up to R4.5-billion into South Africa.
The company further pointed out that it understands and respects the importance of transformation and diversity in the context of broad-based black economic empowerment (BBBEE) in the country and for M&R’s South African operations.
M&R’s share price on the JSE rose to R14.52 on Monday morning, up 50.62% compared with Friday’s close of R9.64.