Alviva announces R2.562-billion buyout and de-listing deal

3 years ago 1

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Information Technology services and equipment supplier Alviva has notified shareholders that it has received an offer to buy out the company’s shares and de-list it from the Johannesburg Stock Exchange.

Alviva owns computer hardware distributors Pinnacle, Axiz, and Tarsus.

A consortium of investors comprising Tham Investments, Day One Asset Management, certain members of Alviva management, and an individual named Mr P Ramasamy made the offer on Tuesday, 13 December.

The consortium’s interests are represented by a company called Fonzosys (Pty) Ltd.

Tham Investments and Ramasamy are two major Alviva shareholders and empowerment partners that currently own around 18.7% of the company’s issued share capital.

Day One Asset Management is wholly owned by four funds under the management of Peregrine Capital.

Fonzosys made a cash offer of up to R2.562 to acquire all Alviva shares it doesn’t own, for a purchase consideration of R28.00 per share.

Alviva said this represents a premium of 45% to the 30-day volume weighted average traded price of R19.29, and a 44% premium to the closing price of R19.50 as at 24 June 2022, the date which represents the closing price before Fonzosys’ original expression of interest.

“The Proposed Transaction will result in Alviva becoming a majority black-owned, privately held, information and communications technology champion,” the company stated.

The deal is conditional on receiving the appropriate regulatory and shareholder approval.