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Torre soars on delisting plans


The industrial group says raising its black ownership will be easier if it's not a listed company and it will save on costs

Torre Industries plans to delist from the JSE as it targets black ownership of above 51%. The industrial group says increasing its black shareholding from its current 29% will be easier to achieve in an unlisted environment and is a business imperative.

Torre says being unlisted will also eliminate the cost of being listed and lower its central costs. It will give the group more flexibility in relation to its capital structure, which is likely to increase efficiency and improve overall returns for shareholders. The move will give shareholders an opportunity to exit their investment. It said its shares were tightly held with relatively poor liquidity and analyst coverage. The company is 57% owned by Stellar Capital.

It intends to make a cash offer to shareholders and implement the proposed delisting by way of a scheme of arrangement.

Last week, the group said it was buying Buccaneer Slurry Pumps from Mining and Slurry Technologies as a bolt-on acquisition to its existing pump business. Buccaneer makes heavy-duty slurry pumps for the mining industry. It said it would pay up to R33 million for Buccaneer, with R15 million paid in cash up front and the balance over two years subject to revenue targets being met. It said the deal would immediately be earnings accretive, adding R5 million to R10 million to operating profit in the next 12 months.


Torre's shares gained 27% to 93c yesterday while Stellar gained 5.1% to 62c.



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