Afrimat Limited, a prominent South African construction materials group, has successfully completed an intra-group repurchase of shares with its wholly owned subsidiary, Afrimat Management Services Proprietary Limited. The company acquired 2,828,790 ordinary shares from the subsidiary at a price of R53.03 per share in a strategic move to facilitate the upcoming Glenover acquisition.
The repurchased shares have been officially delisted from the Johannesburg Stock Exchange (JSE) and will now return to the authorized but unissued share capital of Afrimat as per the requirements of section 35(5) of the Companies Act 71 of 2008.
This transaction was carried out in anticipation of the issuance of Afrimat ordinary shares for partial settlement of the Glenover acquisition, which is scheduled to take place in July 2023. By proactively repurchasing shares in advance, Afrimat ensures that the total number of ordinary shares in circulation remains unchanged after the acquisition.
Afrimat Limited currently holds a balance of 4,606,358 ordinary shares in treasury, indicating a strategic approach to managing its share capital in alignment with the Glenover acquisition. This acquisition is expected to be a significant milestone for Afrimat, further strengthening its presence in the construction materials sector and bolstering its market position.
Operating across various regions in South Africa, Afrimat Limited offers a comprehensive range of construction materials, including aggregates, concrete products, and industrial minerals. The company’s commitment to organic growth and strategic acquisitions has played a crucial role in its success and expansion within the industry.
The completion of this intra-group repurchase showcases Afrimat’s proactive capital management approach and its dedication to maintaining a balanced capital structure. By carefully managing its share capital and pursuing strategic acquisitions, Afrimat aims to maximize shareholder value while supporting its long-term growth objectives.
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