Drama on JSE with Star results and the M&R gagging order
Some drama can be expected on Tuesday when Steinhoff Africa Retail (Star) shareholders discover how much a “cash retention scheme” to compensate its executives for parent group Steinhoff International’s share price crash will cost them.
Another showdown is looming as Murray & Roberts (M&R) reacts to a gagging order Aton got against its CEO.
“Mr Henry Laas, in his capacity as CEO of Murray & Roberts, is ordered to refrain from making any public statements regarding or concerning Aton’s offer,” the German investment company said in a statement released at 5.42pm on Monday.
The gagging order on Laas was included in a ruling by the takeover regulation panel accepting Aton’s raised bid for M&R.
Last Friday, after Aton raised its offer to R17 from R15 per share along with dropping its requirement for minimum 50% acceptance, the target company issued a statement, saying: “The independent board notes that the increased offer price is still below the low end of the independent board’s fair value range of R20-R22 per Murray & Roberts share.”
Star’s share price fell as much as 9% to R16.33 on Monday morning as the market reacted to a trading statement released after 5pm on Friday, saying it expected to report on Tuesday that its headline earnings per share (HEPS) halved following a decision to divert profit to senior management.
Source: businesslive.co.za