Sasfin Holdings made an offer to minority shareholders that values the South African financial-services company at R969-million and plans to delist from the JSE as it refocuses its business.
The company offered minorities 30 rand a share, a 65% premium to the 30-day volume-weighted average, it said in a statement Monday. The company’s two biggest shareholders — Unitas Enterprises and Wiphold — are funding the offer.
They will each subscribe for 7.5% of shares in Sasfin Wealth, whose management team is buying into the business too. Sasfin Wealth has an implied valuation of 500 million rand.
“Our aim is to simplify the group and back our core businesses,” Chief Executive Officer Michael Sassoon said. “The backing of our major shareholders and management team will assist in rolling out our future strategy for the business.”
Sasfin has been reorganizing its structure, selling its capital-equipment and commercial-property finance businesses to African Bank Ltd. in February.
The financial services group also exited its specialized lending and foreign-exchange businesses. All transactions are subject to regulatory approvals.
Following the proposed cash subscriptions from Wiphold and Unitas, Sasfin Wealth will make an offer to buy as much as 10% in Sasfin Holdings. The offer provides minority shareholders with the option to remain invested or exit at a substantial premium to the current market price.