Freeworld not a target of rival bid

Johannesburg - South Africa's Freeworld Coatings [JSE:FWD], formerly the target of a takeover bid from private equity group Brait [JSE:BAT], said on Friday it no longer expects a rival bid from another suitor.

Shares of Freeworld, which makes automotive and industrial paint, initially fell more 5% on the news, before paring some losses.

Freeworld said last month another investor may be considering an offer to rival Brait's R1.7bn bid. Brait's bid was later rejected by Freeworld's board.

Freeworld, which has a market value of about $274m, said in a statement on Friday it the potential bidder has not made an offer after several discussions with the company.

"The company is of the view that the approach of the third party remains tentative," Freeworld said.

Brait originally bid R10.45 per share for the 81% in Freeworld it did not already own. Shares of the company rose as high as R10.75 on expectations it might be the target of a higher bid.

Shares were down 2% at R9.80 as of 10:52 am.

  - Reuters