JOHANNESBURG (miningweekly.com) – Following its announcement late on Thursday of a pending buyout by an international firm, shares in JSE-listed Metmar on Monday rose more than 12% to over 100c by late afternoon.
Physical commodity trader and metals and natural resources merchant Traxys aimed to buy 100% of the African diversified commodities trader for R294-million, equating to R1.10 a share.
An acquisition by Luxembourg-headquartered Traxys would ensure improved diversification and access to international markets for Metmar, as well as access to committed and uncommitted facilities in a variety of major currencies.
It would also widen Metmar’s funding pool, reduce the cost of funding through economies of scale and facilitate access to private equity funding.
The deal, which was expected to be completed by September, remained subject to the requisite approvals from the South African and other relevant competition authorities, the JSE, the Takeover Regulations Panel and the Financial Surveillance Department of the South African Reserve Bank.
Newswire Reuters reported that Metmar’s directors and major shareholders had already indicated an acceptance of the offer.