[2008-09-15]  MRIB de-lists from BSE
EMed Rescue International Botswana (MRIB) de-listed from the Botswana Stock Exchange (BSE) on Friday as it was taken private by Southview Pty (Ltd) a company composed of Botswana Medical Aid and Venture Capital Botswana.“The board has, therefore, come to the conclusion that it is in the best interest of the company and its shareholders for MRIB to terminate its listing from the BSE,” the vice president of South view, Dennies Alexander, said Friday.The move follows a cautionary statement released in February this year in which MRIB said it had received a friendly bid, which came at a prime against the company’s jaded trading price of 112 thebe. Subsequent to that, South view came up with a mandatory offer of 125 which closed on July 11. At the time of the close of the offer, South view, which already had some shares in the company through BOMAID, was in control of 47 percent of the minority share value—pushing its stake to 90.2 percent making it incompatible with the regulations of the BSE. However, some of the minority shareholders decided not to sell but they are likely to be forced-out until the company has gone under some valuation.” Shareholders should note that shares of unquoted companies are generally valued at a discount to the shares of comparable listed companies as a result of the lack of marketability and liquidity.” Following the delisting, it is likely to be difficult for shareholders who did not accept the offer to sell their shares in the absence of a public market for the shares as they would be no arrangement for shareholders to exit.” There was a window and we made an offer but now has closed,” Alexander stressed. He stated that, as from then onwards, the unquoted company will not be obliged to comply with the rules of BSE. However, it would operate in line with the Company’s Act. MRIB’s shares have been on the slide for the past five years, with its profits plummeting every year—leading to a situation where there was very little trade on the counter. Punters started to loose interest on the company when it lost a government tender of road assistance which resulted in the company having to burn a lot of money on legal costs trying to fight it at the High Court- but with no success. The company, which was founded 16 years ago, announced on Friday that it was in a good position now to re-build itself and take control of the market. Apart from the ground and air emergency services and the call centre, it said it would be consolidating its products and developing new ones in the process. Currently, it has offices in Gaborone, Francis town and Maun which gives it the agility to reach almost all corners of the country. It entered the BSE in 2002
Source: STANDARD