Verimark plans to delist from the JSE
The company's majority shareholder plans to acquire remaining shares.
Retailer Verimark said on Monday that its majority shareholder, the Van Straaten Family Trust, plans to acquire the remaining shares and delist the company from the JSE.
Verimark said it had received notice from the Van Straaten Family Trust, which owns a more than 50 percent shareholding, that it planned to acquire the remaining minority interests in the company.
Verimark’s share price jumped more than 17 percent to R1.07 on Monday morning after the announcement.
The Van Straaten Family Trust is linked to Michael van Straaten (pictured), the founder and CEO of Verimark.
“Shareholders are advised that the company has received notice from its controlling shareholder, the Van Straaten Family Trust, of its conditional, non-binding intention to acquire the minority interests in the company and thereafter apply for its delisting from the JSE,” Verimark said in a statement.
Verimark – the company behind Bauer (cookware), Floorwiz and Genesis (cleaning equipment) as well as i-Play (educational toys – didn’t provide reasons for wanting to delist from the JSE.
Verimark’s board of directors has established an independent board to consider the terms of the proposal by the Van Straaten Family Trust.
The company announced its intentions of going private after it released results for the six months ended August 31, 2018.
Its revenue fell 1 percent to R207.5 million from R209.7 million due to lower consumer confidence and an economy that has recently slipped into a recession in the second quarter of 2018. Verimark has recorded a loss before taxation of R2.8 million compared with a profit of R2.2 million in 2017.
Verimark said most retailers tightened up on their stock holding, resulting in lower sales into stores. Verimark’s profitability is impacted by rand exchange movements as it imports more than 90 percent of its products.
“The first six months trading has been tough for Verimark as for most import retailers given the volatility of the rand against foreign currencies. The South African economy is in a technical recession and consumer confidence has suffered as a result.”
No dividends were declared.