Musson Initiates Bid to Takeover Seprod

• Seprod Limited disclosed that it received a Take-Over Bid Offer Circular from Musson Investments Limited (MIL), offering to purchase up to 13,948,000 ordinary shares in Seprod at a cash price of $78.00 per share. This follows Musson’s recent purchase of 1,630 shares on January 5th, bringing its total ownership of Seprod to slightly over 50%.
• The Board of Directors of Seprod has since appointed an Independent Committee consisting solely of directors not affiliated with MIL and its associates to review the Offer and propose a recommendation to shareholders.
• The Offer Circular outlined that the offer will open on January 24, 2024, and close on February 15, 2024, and also mentioned Musson’s intentions with respect to Seprod following the completion of the share purchase.
• Musson has explicitly declared that it does not intend to modify Seprod’s business, alter Seprod’s arrangements with its employees, change the emoluments of the directors of Seprod, or pursue the delisting of Seprod.
• Following this announcement, Seprod’s stock price decreased by 1.85% on January 23, 2024, closing at $82.56. At this price, the stock trades at a P/E of 22.71x earnings, which is above the Main Market Manufacturing & Distribution Sector Average of 14.90x.

(Sources: JSE & NCBCM Research)