COLCOM Holdings Ltd (Colcom) on Tuesday had 5,3 million shares snapped up, each for a bargain price of $280.
‘s shares have lately been going for between $200 and $300.
Zimbabwe Stock Exchange (ZSE) chief executive officer Emmanuel Munyukwi said he was still securing information about the deal worth more than $1,5 billion. He could not however confirm that a hostile take-over bid was planned at Colcom.
“I am still finding out about what actually transpired with the Colcom shares,” Munyukwi said. “The company however had told me about it but we did not expect anything of what actually happened.”
He said the market was quiet at the moment but there was a slight recovery especially among financial counters.
Companies are still releasing their December year-ends and punters are busy snapping up shares hoping for a windfall.
On Tuesday Old Mutual recovered $100 to $7 000 and this helped push the industrial index 2 077.65 points higher relative to Monday’s 345 709.21 points.
Munyukwi said Apex and PG Industries put on $10 apiece to $60 and $120 respectively.
Losses on the other hand included Cairns Holdings and the Zimbabwe Financial Holdings Ltd $25 each to $105 and $625 while the special bargain of 5,3 million Colcom was recorded at $280. The industrial index finished at 347 786.86 points, up 0,60%.
The mining index recovered 0,48% (470.35 points) to 98054.67 points. Munyukwi said Ashanti had jumped $14 000 to $37 000 while Falcon Gold eased $2 to $45.
Last year Colcom’s deal with the Cattle Company Holdings Ltd (CCH) collapsed after the Tariffs and Competition Commission said it would create a monopoly.
Colcom said the major reason for the merger and relisting of its shares on the bourse was to unlock shareholder value through the synergies that exist between the two groups of companies.
This would be achieved through the scheme which sought to merge the two groups of companies under Colcom and CCH by means of a share swap, whereby CCH became the owner of 100% of the issued share capital of Colcom.
As part of the scheme, the existing shareholders of Colcom would swap their current Colcom shares for a 63% shareholding of the merged CCH.
The transaction was therefore in the nature of a reverse takeover, with Colcom shareholders obtaining control of CCH in exchange for a dilution of their percentage shareholding in the combined businesses.