Metcash investors clear path for Metoz buyout
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SHAREHOLDERS of Australian-listed grocery and liquor wholesaler Metcash Trading have approved a number of resolutions that will facilitate the group`s plan to buy the 60% stake in Metcash held by South African -listed holding group Metoz , Metcash said on Friday.
Metoz, previously known as Metro Cash & Carry or Metcash, was left with its stake in Metcash Trading as its sole asset after Metcash`s South African and African operations were bought out by management and a black economic empowerment consortium for R1,3bn.
Metcash`s Australasian businesses comprise three trading divisions IGA Distribution, Campbells Cash & Carry and Australian Liquor Marketers.
Now, Metcash is proposing to buy Metoz`s stake for A2,92 a share as part of the group`s wider plan to undertake a capital reorganisation and also acquire rival retailer Foodland`s Australian business.
On Thursday, Metcash shareholders supported all the group`s proposals, including a capital raising, the issu ing of a new class of shares to Foodland shareholders and the funding of a new entity that will buy the Metoz stake.
As Metoz`s only asset is its interest in Metcash, the move paves the way for Metoz to be delisted from the JSE Securities Exchange SA once the sale is finalised.
Metcash CEO Andrew Reitzer said the board of Metcash was delighted with the overwhelming support of its shareholders.
For the half year to October, Metoz reported a 5,1% drop in revenue from continuing operations to R16,19bn. Operating profit rose marginally from R443,2m to R444,9m and attributable income dropped from R190,5m to R178m.
Metoz shares closed unchanged on Friday at R2,73. I-Net Bridge
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