{"id":15198,"date":"2012-06-12T13:53:06","date_gmt":"2012-06-12T11:53:06","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=15198"},"modified":"2012-06-12T16:47:06","modified_gmt":"2012-06-12T14:47:06","slug":"no-job-cuts-expected-at-avusa-if-offer-succeeds","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/15198\/no-job-cuts-expected-at-avusa-if-offer-succeeds\/","title":{"rendered":"No job cuts expected at Avusa if offer succeeds"},"content":{"rendered":"

No job cuts are expected if Mvelphanda Group<\/a> succeeds with its cash and share offer for the remaining 79% it does not own of media and entertainment group Avusa<\/a>\u201a interim CEO of Mvela\u201a Andrew Bonamour<\/a>\u201a said on Tuesday (12 June).<\/p>\n

He also said the plan was not to asset strip Avusa but to build it.<\/p>\n

“What we are trying to do is not an asset strip … we are a builder\u201a” he told a news briefing.
\nThere was also no plan to sell any of media group\u2019s assets if Mvela succeeded with its R24 rand per share offer\u201a he added.<\/p>\n

He said the plan was to turn Avusa around and if everything was done right there should be a turnaround in 18 months.<\/p>\n

According to Bonamour\u201a there was some wasteful expenditure that needed to be looked at but it was at the top.<\/p>\n

“Avusa has not only underperformed the market it’s underperformed its peers\u201a” he added.
\nThe cash and share offer announced by Mvela on Tuesday\u201a which is being made through its wholly owned subsidiary\u201a Richtrau No. 229 (Proprietary) Limited\u201a is estimated to be worth some R3 billion.<\/p>\n

Blackstar Group SE\u201a a listed investment company that controls 28% of Mvela Group\u201a is the arranger and promoter of the transaction and will assist management in driving the turnaround strategy in Avusa.<\/p>\n

The transaction comprises a series of interconditional steps that will result in Richtrau becoming a listed entity on the JSE\u201a housing all of Avusa\u2019s assets.<\/p>\n

The offer comprises a cash offer of R24.00 per Avusa ordinary share and a share exchange of Avusa ordinary shares (or a portion thereof) for ordinary shares in Richtrau. The cash offer represents a premium of 19.6% to the Avusa 30 day volume weighted average price (VWAP) per ordinary share of R20.07 as at close of business on 11 June 2012.<\/p>\n

The share exchange ratio is 1.478 Richtrau ordinary shares for every one Avusa ordinary share. The exchange ratio is based on Richtrau\u2019s net asset value (existing Avusa ordinary shares owned plus cash less debt) and Avusa\u2019s 30-day VWAP of R20.07.<\/p>\n

In order to fund the cash offer\u201a Mvela Group is injecting R480 million of equity into Richtrau and raising R650m of bridge funding to finance the cash offer to Avusa shareholders.<\/p>\n

In terms of the composite transaction\u201a Richtrau proposes to implement the offer through a scheme of arrangement\u201a the listing of all the ordinary shares of Richtrau on the JSE and Mvela Group unbundling its shares in Richtrau to its shareholders.<\/p>\n

Upon listing\u201a Richtrau will have a smaller board (maximum of 9 people) that will consist of an independent chairperson and other experienced business professionals to support management and provide the necessary strategic guidance to the business.<\/p>\n

Richtrau has chosen Colin Cary as the new head of Avusa following the conclusion of the proposed transaction. Cary\u201a who is currently managing director of Avusa Retail Solutions\u201a is the founder and former CEO of Hirt and Carter\u201a which Avusa acquired with UHC in November 2010.<\/p>\n

Richtrau has secured irrevocable undertakings from a number of key Avusa shareholders to vote in favour of the offer\u201a which shareholders collectively hold 65.0% of those Avusa shares eligible to vote at the scheme meeting.<\/p>\n","protected":false},"excerpt":{"rendered":"

No job cuts are expected if Mvelphanda Group succeeds with its cash and share offer for the remaining 79% it does not own of media and entertainment group Avusa\u201a interim CEO of Mvela\u201a Andrew Bonamour\u201a said on Tuesday.<\/p>\n","protected":false},"author":8,"featured_media":7874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[1],"tags":[25,1978,3117,3125],"class_list":["post-15198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-active","tag-avusa","tag-blackstar-group","tag-mvelphanda-group"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/15198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=15198"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/15198\/revisions"}],"predecessor-version":[{"id":15200,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/15198\/revisions\/15200"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/7874"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=15198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=15198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=15198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}