The proposal from Brian Joffe’s Long4Life to acquire all Holdsport shares is currently under review by an independent expert to determine if the offer is fair and reasonable to Holdsport’s shareholders, says Holdsport CFO Cobus Loubser (above). “The expert opinion will be circulated to shareholders in due course in a notice of a meeting where they will have the opportunity to vote on the proposal.”
Holdsport – comprising of Sportsmans Warehouse, Outdoor Warehouse and the wholesale Performance Brands division – is therefore unable to comment on the transaction at this stage, says Loubser.
“At least 75% of shareholders have to vote in favour of the proposal for the proposed scheme to proceed,” he adds. “It is our understanding that many shareholders support the proposal but those who don’t support the process will have an opportunity to exercise their rights at the shareholders meeting.”
According to a SENS announcement published on 25 July 2017 Holdsport shareholders could either receive 12.10 ordinary shares in Long4Life for every one Holdsport share held by them, or receive 11.20 Long4Life Shares and R5 in cash for every one Holdsport share, subject to a maximum cash consideration of R204-m.