Yebo Guma Investments has made an offer to acquire all of Gijima’s shares, following which it plans to delist the company from the JSE Securities Exchange.
Guma has made an offer to acquire all of the remaining shares in the issued ordinary share capital of Gijima, being 6 930 389 Gijima shares, excluding treasury shares of 16 981 not already owned by Guma, Guma Tech Proprietary Limited, Guma Tech Group Proprietary Limited, Guma Support Proprietary Limited, Guma Investment Holdings Proprietary Limited, and Guma ICT Proprietary Limited.
The offer has been made on the basis that a scheme of will be proposed by Gijima between Gijima and the holders of offer shares, for a payment amount of 220 per share. This is a 10% premium on the rights offer made in December 2014 and a 30% premium on the 30-day average share price.
The Rights Offer resulted in the Guma entities interest in the issued shares of Gijima increasing to 88,4%, leaving the company with a small remaining free float of 11,6%.
Given the small remaining free float and the current status of the company’s turnaround, which is ongoing, Guma believes it is in the best interests of the company to be held 100% by the Guma Entities and to delist, so it can complete the turnaround in an unlisted environment.
Following the successful implementation of the purchase scheme, application will be made to the JSE to terminate the listing of the Gijima shares on the JSE.