Long4Life’s raised bid for Holdsport announced on
Tuesday morning appears to have been too generous, with its share price
falling 20% while Holdsport’s jumped 7%.
Long4Life’s new bid for Holdsport was a choice between 12.1 of its shares for each Holdsport share or
11.2 shares plus R5 cash, the companies said in a joint statement on Tuesday morning. The cash offer is capped at R204m.
This beat an earlier offer of swapping 10.44 Long4Life shares for each Holdsport share.
At Long4Life’s closing price of R7.80 on Monday, 12.1 of its shares were worth R94.38, a 44% premium to Holdsport’s R65.55 at the time.
After Tuesday morning’s crash to R6.15, Long4Life’s offer was worth R74.42 against the R73 that Holdsport’s share price rose to.
"This is a pivotal acquisition for Long4Life and aligns with our stated investment criteria. Holdsport not only adds significantly to the intrinsic value of Long4Life, as well as our overall gearing capacity, but will prove to be key in establishing and building the Long4Life investment platform in the lifestyle sector," CEO Brian Joffe said on Tuesday.
Holdsport would be Joffe’s second acquisition since launching Long4Life in April. On July 14, Long4Life announced it was acquiring beauty salon franchisor Sorbet for up to R116m, depending on it meeting targets.
BDLIVE - SA
Long4Life’s new bid for Holdsport was a choice between 12.1 of its shares for each Holdsport share or
11.2 shares plus R5 cash, the companies said in a joint statement on Tuesday morning. The cash offer is capped at R204m.
This beat an earlier offer of swapping 10.44 Long4Life shares for each Holdsport share.
At Long4Life’s closing price of R7.80 on Monday, 12.1 of its shares were worth R94.38, a 44% premium to Holdsport’s R65.55 at the time.
After Tuesday morning’s crash to R6.15, Long4Life’s offer was worth R74.42 against the R73 that Holdsport’s share price rose to.
"This is a pivotal acquisition for Long4Life and aligns with our stated investment criteria. Holdsport not only adds significantly to the intrinsic value of Long4Life, as well as our overall gearing capacity, but will prove to be key in establishing and building the Long4Life investment platform in the lifestyle sector," CEO Brian Joffe said on Tuesday.
Holdsport would be Joffe’s second acquisition since launching Long4Life in April. On July 14, Long4Life announced it was acquiring beauty salon franchisor Sorbet for up to R116m, depending on it meeting targets.
BDLIVE - SA
No comments:
Post a Comment