Johannesburg - Shares in Avusa [JSE:AVU] were up almost 13% in noon trade on Tuesday, following an announcement by Mvelaphanda Group that it has made a cash and share offer to acquire all the shares in issue in the media and entertainment company it does not already own in a deal worth about R3bn.
The cash offer of R24 per Avusa share is being made through Mvela’s wholly-owned subsidiary‚ Richtrau No 229 (Proprietary) Limited. Mvela currently owns around 21% of Avusa.
Blackstar Group SE‚ a listed investment company that controls 28% of Mvela Group‚ is the arranger and promoter of the transaction and will assist management in driving the turnaround strategy in Avusa.
In terms of the deal‚ Avusa will be delisted from the JSE and Richtrau will be listed on the bourse and unbundled to Mvela’s shareholders‚ pursuant to the transaction.
News of the offer saw Avusa’s share price up 12.93% or 265 cents at R23.15 per share – just 85 cents shy of the cash offer - at 13:43 local time.