Johannesburg – Wealth and asset management company Anchor Group has become the latest company to announce its intention to delist from the JSE early next year amid “difficult South African listed equity market”.
The group joins a long list of companies that have delisted from the JSE recently, including Afrox, Pioneer Foods, Intu Properties, Clover Industries, Grit Real Estate, Tiso Blackstar, Torre Industries and Assore.
On Friday, the group said that it planned to buy back shares from its shareholders at a price of R4.25 a share, which represented an 11% premium to the 30-day volume weighted average price at the time of publication of the offer, or shareholders had the option of retaining their shares in the delisted entity.
Anchor said at R4.25 per share, the value of the business was R922 million.
The group further said it had committed access to more than R450 million to facilitate the delisting.
Chairperson Mike Teke, who also represents major shareholder Masimong, said the proposed delisting would help to achieve the objectives of facilitating Anchor becoming 51% black-owned and increasing management’s stake.
Chief executive and founder Peter Armitage said this was an exciting next step in the evolution of the group.
“We have built critical mass, with more than 15 000 clients and more than R65 billion of assets under management and administration, and we believe we will better service our clients in the long term as an unlisted entity,” Armitage said. “It was important for us that loyal shareholders were given the opportunity to retain their stake in the company and participate in its future growth,” said Armitage.