Senior Business Correspondent
NEW Africa Investments Limited's (Nail's) share price gained 52,7% in a single day to close at 962c on the JSE Securities Exchange SA amid rumours of an imminent sale of Nail or some of its assets.
The share price, which has loitered at about 586c in the past few months, has gained 376c since its sale announcement on May 28.
Yesterday the share price closed 332c higher than Friday's closing 630c.
There were six trades yesterday, with 10000 shares changing hands for R96199.
There has not been much change in Nail's N share price, at which has been at 700c since that announcement.
Nail spokesman David Barritt said yesterday that the group could not explain why the share price rose suddenly more than 50% in one day.
"The proof of the pudding is seeing how long the share price will maintain that level," he said.
Nail believed that the move was an isolated incident, he said.
Barritt said the closing date for the submission of expressions of interest in Nail and its assets was June 13 (this Friday).
"Nail has not done a deal. Besides, even after the bids have been submitted it will take a minimum of two months before any thing clear is revealed ," he said.
An analyst said that the jump in the share price came as a surprise to many. "What can be deduced is that the shares traded were those mostly by Phaphama, whose largest shareholder is Hollard," he said.
Bidders known to be interested in Nail and its assets include Primedia and the Mineworkers Investment Corporation in one consortium, as well as Johnnic Communications, Kagiso Media and Caxton in another camp.
Jun 10 2003 07:35:58:000AM Patrick Wadula Business Day 1st Edition
Tuesday
10 June 2003
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