HARARE - Japanese coatings company Kansai Plascon Limited (Kansai) is set to wholly acquire Astra Industries Limited (Astra) after revealing plans to buy out minority shareholders.
Kansai currently owns a 63,25 percent stake in the Zimbabwe Stock Exchange-listed paints manufacturer it acquired for $5,5 million from the Reserve Bank of Zimbabwe in 2013.
Last week, Astra said it received a firm intention to make a joint offer from Kansai and Hemistar Investments (Private) Limited (Hemistar) to acquire — subject to applicable terms and conditions — ordinary shares held by its minority shareholders.
According to ZSE’s listing rules, Astra will have to delist if the transaction goes through.
The local bourse’s rules stipulate that any entity that acquires more than 35 percent of a listed company is required to buy out minority shareholders at the current trading price and subsequently delist or reduce shareholding to prescribed threshold.
Astra shareholders who accept the mandatory offer, by the closing date of August 29, 2014 shall receive a gross amount of $0,06213 for every Astra share.
“…the mandatory offer would be implemented in accordance with the ZSE regulations,” Astra said, adding that “relevant taxes and levies will be applicable.”
Upon acquiring the Astra stake last year, Kansai chief executive
Nauman Malik said the deal indicated his group’s confidence in the Zimbabwean economy.
“The acquisition will allow the organisation to focus further on its expansion plans and its aim to continue leading the industry,” he said then.
“The acquisition will allow the organisation to focus further on its expansion plans and its aim to continue leading the industry.”
Hiroshi Ishino, Kansai Paint Japan president, also said the group intends to invest in the rest of Africa through its holding in Kansai Plascon Africa. He hopes the partnership between Astra and Kansai will further entrench Kansai’s position as the number one coatings company in Africa.
Kansai has operations in Botswana, Namibia, Zambia and Malawi.
Where it does not have a factory in a region, it exports out of South Africa into retail outlets and directly to contractors. It has been exporting to various countries in Africa since 2004 including:
Mozambique, Seychelles, Mauritius, Kenya and Nigeria.
Astra Industries on the other hand, comprises two businesses, Astra Paints and Astra Chemicals, which markets and distributes a diversified range of chemical products to industry.Astra Paints is currently the largest paint manufacturer in Zimbabwe and has two operating factories in Harare and Bulawayo.