Eqstra CFO Says Company Won’t Raise $16 Million Bid for Protech

Eqstra Holdings Ltd. (EQS), a South African mining equipment-leasing company, said it won’t increase its 60 cents a share offer for Protech Khuthele Holdings Ltd. (PKH) after the bid was rejected.

“We believe that 60 cents is a fair and reasonable price that will unlock value for shareholders,” Johannesburg-based Eqstra’s Chief Financial Officer Jannie Serfontein said in a phone interview today. “We are not going to pay for prospects which are on paper.”

The company already owns 32.77 percent of Protech, and is offering to pay 146 million rand ($16 million) for the shares it does not already own. That would value the company at 218 million rand, Eqstra said in a statement on Feb. 22.

Protech, which has interests in civil engineering and mining, said on April 5 the offer “significantly undervalues the company and is unfair and unreasonable.” Its shares fell as much as 5.7 percent, the most in more than a month, and were down 3.8 percent at 51 rand by 2:07 p.m. in Johannesburg.

Protech shareholders should now be left to decide on whether to accept the offer, Serfontein said. Eqstra shares traded 0.3 percent higher at 6.44 rand, valuing the company at 2.7 billion rand.

To contact the reporter on this story: Kamlesh Bhuckory in Johannesburg at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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