Avusa Gains Most in Year on Mvelaphanda Takeover Bid
The stock climbed 8.8 percent to 22.31 rand at the 5 p.m. close in Johannesburg, the biggest gain since March 2011. Mvelaphanda’s Richtrau Ltd. unit will pay 24 rand in cash or 1.48 Richtrau shares for each share of Johannesburg-based Avusa, the companies said in a statement today. Richtrau already owns 21.3 percent of Avusa.
Mvelaphanda, an investment company with stakes in Absa Group Ltd. and construction company Group Five Ltd. (GRF), will distribute Richtrau stock to its shareholders before listing the unit on the Johannesburg Stock Exchange, it said. Mvelaphanda said it has received commitments from shareholders holding 65 percent of Avusa’s shares.
The new company will be led by Colin Cary as chief executive officer, Andrew Bonamour, the chief executive officer of Mvelaphanda, said in a telephone interview today. Cary is the company’s non-executive director.
“There will be no wholesale changes, we’ve earmarked Colin as the CEO and the rest of the team will stay on as it is,” Bonamour said. “We’ll just strengthen the management and take it from there.”
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