Barloworld’s management-led consortium has achieved a decisive outcome in its standby offer, allowing it to proceed with the acquisition of the remaining shares and take the company private.
The standby offer, which closed on November 7, was accepted by shareholders holding 139.5-million Barloworld ordinary shares, representing about 97.6% of the shares offered.
Together with shares already held by the consortium and certain excluded shareholders, the consortium now controls 96.5% of Barloworld’s total issued ordinary shares.
Having exceeded the 90% threshold required under section 124 of the Companies Act, the consortium can now legally require the remaining minority shareholders to sell their shares at the same price as offered in the standby offer at R120 per share. This process, often referred to as a “squeeze-out”, ensures that the consortium can achieve full ownership of Barloworld and move forward with taking the company private.
“We are pleased with the overwhelming success of the standby offer,” said consortium spokesperson Sydney Mhlarhi. “This outcome confirms strong shareholder support for our acquisition and allows us to take Barloworld private, ensuring long-term support for its industrial growth strategy.”
Once the compulsory acquisition is completed, the consortium, together with the excluded shareholders, will hold 100% of Barloworld’s shares. The company has confirmed it will then apply to terminate Barloworld’s listings on the JSE and A2X.
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