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Radar seeks shareholders’ approval


ZIMBABWE Stock Exchange listed industrial concern, Radar Holdings (RHL) Limited, is seeking shareholder support for a transaction which could result in the re-distribution of shares in the group.

By our Business Reporter

The transaction will see RHL relinquish shareholding in one of its subsidiaries.

According to a circular released by the board yesterday, shareholders are expected to vote for or against the distribution in specie of RHL equity held in Border Timbers Limited.

An extraordinary general meeting on the transaction is scheduled for December 13.

The group contends that this would allow RHL to focus on construction and related businesses.

RHL has interests in quoted agro-industrial group Border Timbers Limited, MacDonald Bricks, Radar Corporate Services and Radar Investments.

“The RHL board is seeking approval from the RHL shareholders for the proposed distribution in specie of the BTL shares to RHL shareholders comprising 22 005 087 ordinary shares in BTL, as a specific payment to RHL shareholders registered as such on 3 January 2013,” reads the circular in part.

Under the proposed plan, RHL shareholders would receive approximately three million BTL shares for every seven million shares held in RHL.

This, according to the circular, would have no impact on the shareholding at RHL level, but RHL’s direct shareholding of 51,24% in BTL would no longer exist.

“In light of the competitive dollarised environment, the board deems the demerger of BTL from RHL as a necessary event given the differing financial needs and sectoral focus of each business,” the circular said.

“In the board’s opinion, this transaction will position RHL as a pure construction group to attract new capital. This will allow RHL to build on the already positive performance achieved by the company in the construction sector.

“In summary, the demerger will allow for clear operational focus, which is both attractive to investors and positions RHL to pursue its own independent direction.

“The strong standalone company will have the ability to undertake mergers and acquisitions with entities in the same and complementary spheres of operations, which will drive shareholder value.”

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