Radio frequency technology specialist Alaris has received a R535 million buyout bid, which could see it delisted from the Johannesburg Stock Exchange (JSE).
In a notice to the stock exchange, Alaris stated that a consortium comprising Tadvest Limited, CRH Investments, Conexus Capital Growth Fund Trust, Brazen Force Investments, Nguni Investments and Chauke Investments has offered to acquire the entire issued share capital of Alaris. This will be for R4.20 per share. Should the offer be accepted, the listing of Alaris shares on the JSE will be terminated.
Shares in Alaris rose more than 25% on Monday on the news.
In its stock exchange notice, Alaris said it and the consortium believe there is limited benefit for Alaris being listed on the JSE, “having not garnered sufficient institutional shareholder support to justify the limitations imposed by the regulatory processes and the compliance costs and other costs associated with and incidental to being listed on the JSE.”
The consortium and Alaris considers the lack of liquidity of Alaris shares to “impede its ability to raise capital in the market, a disincentive for institutional investors, and a hinderance on existing shareholders’ ability to realise their investment in Alaris in the market. Accordingly, from a consortium perspective, the costs associated with Alaris being listed on the JSE outweigh the benefit of being able to publicly trade in Alaris shares.”
The consortium believes that the transaction and proposed delisting of Alaris from the JSE will place Alaris’ management in a position to be better aligned with a tighter shareholder base which should enable Alaris to reposition the business to focus on further global expansion.
The consortium would in the future reposition the business of Alaris for further global expansion and, depending on the financial performance of the company and the prevailing market conditions, seek a listing on an international exchange.
Alaris Holdings is a global radio frequency technology holding and investment company that operates across multiple markets, from defence, aviation, marine and wireless, to industrial, healthcare, research communities and governmental institutes. The company has been listed on the JSE ALTX since July 2008.
The Alaris Group consists of Alaris Antennas, mWAVE, Linwave and COJOT. Alaris Antennas (formerly Poynting Antennas) designs, develops, manufactures and sells specialised broadband antenna systems and other related radio frequency products used in the communication, frequency spectrum monitoring, testing and measurement, electronic warfare and other specialised markets. Its client base – consisting of system integrators, frequency spectrum regulators and players in the homeland security space – is located across the globe, mostly outside of South Africa, in the Americas, Europe and Asia.
COJOT is a company that originated in Finland and designs and manufactures antenna products for military and security markets, including antennas suitable for manpacks and mission critical vehicles.
mWAVE is based in Windham, Maine, in the United States, and supplies custom and commercial microwave antenna solutions. The company was established in 2004 and designs and manufactures standard and custom microwave antenna products for commercial and government applications. Trading as a division of mWAVE Industries, Alaris USA sells and supports specialised antennas and other RF related products designed by COJOT and Alaris Antennas to customers in North America. Its products are used in the communication, frequency spectrum monitoring, testing and measurement, counter unmanned aircraft systems (UAS), electronic warfare and other specialised markets.
Linwave Technology is based in Lincoln, UK, and supplies custom RF and microwave products across multiple markets from defence, avionics, marine and wireless, to industrial and healthcare.