JSE-listed Afrimat yesterday increased its offer to the minorities of fellow JSE group Infrasors, from 35 cents to 65 cents a share. This is a premium to the current trading price of Infrasors at around 60 cents.
On 1 March 2013 the group acquired a majority stake in the struggling Infrasors, with the intention of extracting value from its promising assets through Afrimat’s proven turnaround skill. Afrimat is a leading open pit mining and industrial minerals group. It recently released solid results for the year to February 2013 outperforming its peers and the sector.
CEO Andries van Heerden says the raised offer to minorities reflects Afrimat’s commitment to achieving an effective turnaround of Infrasors, something he says is “made difficult by the presence of minorities and complex management structures which prevent Afrimat from assuming full control and bringing to bear the full extent of our management skill”. He adds that the turnaround will demand significant effort from Afrimat, which only makes commercial sense for the group should it be positioned as full owner. "In light of this it would make the best sense for Infrasors’ minorities to exit a beleaguered stock at a more than fair price and rather realise long-term value by investing in Afrimat’s sustainable stock."