subscribe: Daily Newsletter

 

Gijima buyout to go ahead

1 comment

JSE-listed South African information and communication technology (ICT) company Gijima announced on 17 February its intention to voluntarily delist from the JSE, following the implementation of the buy-out of the minority shareholders by a company controlled by its founder and executive chairman Robert Gumede of Guma Group.

The shareholders of Gijima voted in favour (99,38%) of resolutions on the buy-out of minorities and subsequent voluntary delisting from the JSE at a general meeting held on 2 April 2015.

As no objections to the buy-out were received, the Takeover Regulation Panel (TRP) issued its compliance certificate on 21 April 2015 in terms of section 115(3)(b) of the Companies Act in respect of the Scheme, and, as such, all outstanding conditions precedent have now been fulfilled.

Accordingly, Gijima shareholders will receive 220 cents per ordinary Gijima share, a 10% premium on the rights offer completed during December 2014, and Gijima will be voluntarily delisted as part of the implementation of the scheme.

The salient key dates for the voluntary delisting follow:

Last day to trade Gijima shares – Thursday, 30 April, 2015.

Resultant suspension of Gijima shares on the JSE to take place as trading opens on Monday, 4 May, 2015, given that Friday 1 May, 2015 is a public holiday.

The voluntary delisting of Gijima shares on the JSE is to take place at commencement of trade on Tuesday, 12 May, 2015.

Gijima reiterates that it will remain committed to high standards of good corporate governance and transparency. Once Gijima is out of a closed period post the voluntary delisting, Gijima will keep its stakeholders abreast of its solid and satisfactory turnaround progress, and the required salient supporting financial data. Guma as the 100% shareholder has committed to continue to provide both operational and financial support to Gijima as it continues with its successful turnaround and growth.

The Gijima board, Guma as a 100% shareholder and executive chairman Robert Gumede, would like to thank the Gijima shareholders who voted overwhelmingly in support of the recent successful R100m rights offer which was fully underwritten by Guma, the successful buy-out of the minorities and the resultant voluntary delisting of Gijima. Even though the company will no longer be publicly listed, it intends, however, to keep some of the disciplines of a listed entity.

The future indeed looks bright for the now only 100% BBBEE IT services company of its size and in particular, for its clients both in the private ( 70% ) and public sectors (30%), who continue to support it, and the over 2 600 multiracial staff members of Gijima.

The turnaround and growth of Gijima is going according to the plan under the hands-on CEO, Ms Eileen Wilton and her management team.

  • Jamie Leigh

    Always hearing about the turn around strategy but haven’t seen it take place yet.