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Online Share Trading

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Illovo

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New Contributor
Just want to find out. ABF have made an offer of R25/share to acquire the remaining Illovo shares.The transaction is to be facilitated by means of a scheme arrangement or by means of a general offer by ABF (if the scheme offer fails). Can someone help me with regards to what does this really mean ? If i own shares at the moment in Illovo what does it mean ? Thanks for the help
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Regular Contributor
Hopefully you didn't pay R30 a few years ago? If you got them for R15 recently take the offer....
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Super Contributor
No offence mullet, but as a general rule I don't take advice from a fish.
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Valued Contributor
you will be asked to vote on the deal, if majority vote yes you will sell your shares at R25
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Not applicable
A bad deal, IMO. At R25 a share, they are paying around 1.5* the fixed asset value of a revenue generating asset. There is a reason they are doing this. Illovo owns around 64k hectares of land in one of the few environments globally of producing food on the scales needed to feed a global population. Just sugar alone is an industry where demand is set to outstrip supply. This is a strategic asset being 'colonised' for lack of a better description (although some would argue that Illovo colonised the land in the first place -:). They are getting this at beat down prices thanks to a drought (which is seasonal and likely to end soon)
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