The shareholders of JSE-listed Avusa have approved its sale to Mvelaphanda Group through its wholly owned subsidiary, Times Media Group.
Shares in Avusa jumped 4.51% to R22.47 on the JSE, giving the group a market cap of R2.79 billion.
In mid-June, Mvelaphanda Group‚ which owns about 21% of Avusa‚ announced a cash and share offer to acquire all the shares in issue in the media and entertainment company that it did not already own, in a deal worth about R3-billion, or R24 per Avusa share.
Avusa said in a statement on Thursday (16 August) that, “Avusa shareholders are advised that, at the general meeting of Avusa shareholders held on Thursday, 16 August 2012, at the offices of Avusa, the special and ordinary resolutions required to give effect to the Scheme were approved by the requisite majority of votes.”
“Scheme participants holding in excess of 78.5% of the ordinary shares of Avusa (other than Avusa ordinary shares held by TMG) voted in favour of these resolutions.”
At the end of July, the Public Investment Corporation (PIC) said it had decided not to support the buyout of Avusa by the Times Media Group.
PIC, a 17% shareholder in Avusa, said as a “concerned shareholder” it was worried about Avusa’s underperformance, Business Day reported.
News of the original offer in June saw Avusa’s share price up 12.93% or 265 cents at R23.15 per share, 85 cents off of the cash offer.