Paladin bids for more Top Fix

Cape Town - PSG-owned investment specialist Paladin Capital has made a formal offer to buy up more shares in scaffolding specialist Top Fix Holdings.

A Stock Exchange News Service (Sens) announcement on Thursday said Paladin was keen to bump its stake in Top Fix to 34.9% - a shareholding that stops just short of the level that would trigger a mandatory offer to all shareholders.

As detailed in previous Fin24.com articles, Paladin already holds a 24.1% stake in Top Fix, mainly by accumulating shares on the open market. On Monday Paladin acquired another 3.7 million shares in Paladin.

Paladin's offer will see Top Fix shareholders offered an option of scrip or cash. This entails a cash bid of 70 cents per share or a share swap involving the issuing of 0.42 Paladin shares for every one Top Fix share held.

Top Fix shareholders can also opt for a settlement in both cash and scrip.

To date it is not clear why Paladin is so enamoured with Top Fix, which has not exactly shot the lights out operationally since listing in 2006.

Officially - at least according to Top Fix's Sens announcement - Paladin wants to expand its footprint in the construction sector as well as grow its annuity income base.

Fin24.com has noted recently that Top Fix has been awarded contracts worth about R100m in Richards Bay.

To date Top Fix has not reacted or responded to Paladin's advances.

The Sens announcement contained no recommendation to Top Fix shareholders as to whether the offer by PSG - pitched at a 15% premium to the group's recent share price - was fair and reasonable.

Formal documentation around Paladin's offer would be posted to Top Fix shareholders shortly.

- Fin24.com