Long4Life sale gets investor approval
Shareholders approved investment holding company Long4Life’s sale to Old Mutual’s private equity arm yesterday.
A Business Day report notes the deal, which obtained almost 90% of shareholders’ votes, now needs approval from the competition authorities.
Long4Life joins a growing list of smaller companies delisting from the JSE, as the costs and administration of being listed outweigh the benefits, as small caps continue failing to gain interest from investors.
Long 4Life struggled to gain traction with investors even while being led by business doyen Brian Joffe and did not raise enough money to expand.
Joffe, famed for his deal-making abilities, built Bidvest from a bakery into a global conglomerate worth more than R250bn.
Old Mutual’s private equity arm upped its offer to R6.20 a share for Long4Life after an initial R5.80.
The group net asset value, taking into account the value of all the businesses, is calculated at R7.27.
The company includes retail assets Sportsman’s Warehouse and Outdoor Warehouse, Sorbet beauty franchise and Chill and bottler Inhle Beverages, which produces Fitch and Leedes tonic mixer and energy drink Bashers.
It also owns rehabilitation facilities for patients after they leave hospital.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
