Pep de-listing decision to be taken soon

THE Pep Namibia Holdings board have approved a buyout by the South African parent company, the first step in its possible de-listing from the Namibian Stock Exchange (NSX).

“The directors of Pep Namibia have approved the offer set out in the take-over statement issued by Pep Retail,” the Pep Namibia board said in a statement issued on December 31. The buyout must now be approved by Pep Namibia minority shareholders at a general meeting to be held on Wednesday January 21.If the shareholders agree, the last day of trading in Pep Namibia shares will be Friday January 30.While the deal is by no means guaranteed, sources said on Friday it would probably go ahead, with some stockbrokers recommending their clients approve the deal.Pep’s share price is now less than half it was at its listing in 1995, according to stockbroking sources.Pep has said its share prices was likely to come under sustained pressure if it remained listed, owing to increased competition in the Namibian clothes retail market.The financial reporting requirements for listed companies were also “significant” and their cost did not justify their benefits, it said in a December statement on the de-listing.In November, Pep Namibia had to re-state its annual accounts after minority shareholders raised concerns about a misstatement of interest income at the annual general meeting (AGM).In the revised results, Pep Namibia reported more than N$1 million in additional finance income.The company said it was a “small-capitalisation” firm, and the market was biased against investing in small companies.Being a listed company had also exposed Pep’s finances to the scrutiny of competitors, the majority of whom were not listed.The buyout must now be approved by Pep Namibia minority shareholders at a general meeting to be held on Wednesday January 21. If the shareholders agree, the last day of trading in Pep Namibia shares will be Friday January 30. While the deal is by no means guaranteed, sources said on Friday it would probably go ahead, with some stockbrokers recommending their clients approve the deal. Pep’s share price is now less than half it was at its listing in 1995, according to stockbroking sources. Pep has said its share prices was likely to come under sustained pressure if it remained listed, owing to increased competition in the Namibian clothes retail market. The financial reporting requirements for listed companies were also “significant” and their cost did not justify their benefits, it said in a December statement on the de-listing. In November, Pep Namibia had to re-state its annual accounts after minority shareholders raised concerns about a misstatement of interest income at the annual general meeting (AGM). In the revised results, Pep Namibia reported more than N$1 million in additional finance income. The company said it was a “small-capitalisation” firm, and the market was biased against investing in small companies. Being a listed company had also exposed Pep’s finances to the scrutiny of competitors, the majority of whom were not listed.