PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Paint and Coatings Industry News

Main News Page


Freeworld Coatings Buyout Collapses

Friday, June 25, 2010

Comment | More

Shareholders of Freeworld Coatings Ltd. have killed a planned takeover of the company by the investment group Bidco.

Freeworld, based in Johannesburg, South Africa, issued a statement after the shareholder vote June 14, reporting that the deal “has not been approved by the requisite majority of votes.”

Without shareholder approval, “the scheme will not be implemented,” the statement said. “As a consequence, the Bidco offer has lapsed.”

Freeworld Coatings, formerly known as Barloworld Coatings, is an international marketer of decorative, automotive and industrial coatings. With factories throughout sub-Saharan Africa, the 118-year-old company serves that region as well as Australia and China and exports products worldwide.

The shareholders’ “no” vote came just three days after Freeworld  announced the possibility of a competing bid for the company by a still-unnamed party.

“The directors intend to investigate the ability of the competing bidder to make a competing offer and the details relating to such an offer,” the company said. “Shareholders are accordingly advised to exercise caution when dealing in their Freeworld shares until a further announcement is made in this regard.”   

Bidco, a private equity consortium led by private equity funds under the management of subsidiaries of Brait Societe Anonyme, announced March 31 that it planned to acquire all Freeworld shares not yet owned by it or its holding company, VVT Infrastructure Investments (Proprietary) Limited. Those parties own 18.86% of Freeworld’s shares.

The deal received unconditional approval last month from South Africa’s Competition Commission, according to a joint statement by the parties. The deal was expected to close in July.

Bidco’s terms of the deal were apparently non-negotiable, however. On June 3, Freeworld told shareholders that Bidco had notified the company in writing that it was holding fast to both its bid (R10.45 or $1.38 U.S. share) and the timing of the deal.

Bidco released no separate statements about the purchase. After the vote, however, Brait CEO Anthony Ball told Moneyweb.com: “We're disappointed, but that is shareholder democracy.”

André Lamprecht, CEO of Freeworld, did not say whether the possibility of a competing offer had driven the shareholders’ rejection of Bidco, the web site reported.

“Clearly, the company is of interest,” Lamprecht told Moneyweb.com. “We are not yet in possession of a firm offer but were required to notify shareholders that somebody might be considering something. I can't say if shareholders were waiting for something better. Only they can answer that.”

   

Tagged categories: Acquisitions; Freeworld Coatings; Mergers

Comment Join the Conversation:

Sign in to our community to add your comments.

Dampney Co., Inc.
Rubber In a can!

Rubberized Spray in a
Handy Aerosol Can

• Stays flexible
• Seals off moisture penetration
• Non sagging formulation
• Will not crack, chip or peel
• Apply to wet and dry surfaces
• Paintable


International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment


    Blastox/The TDJ Group, Inc.
    Blastox - One Step
    Lead Abatement

    Don't waste $$ on added labor steps with other methods. Don't mix, meter or apply at the job-site. Avoid strict hazardous waste rules.
    Let your painters paint!


    Corrosion Probe, Inc.
    From Detection to Correction

    Corrosion Probe, Inc. has the Most Concrete Coatings Experience and Expertise. Contact us today at
    860-767-4402, www.cpiengineering.com


    Graco Inc.
    Blast with 92% less dust.

    Graco EcoQuip Vapor Blast equipment performs as well as dry blasting, but reduces airborne dust up to 92%! Use less media, save money in material and cleanup. See our FREE shipping offer!


    SAFE Systems, Inc.
    SAFE Systems'
    Blast Lights &
    Deadman Switches

    Halogen or LED blast lights available with our NEW urethane bumper. Switches available in many colors for color coding your hoses.


    CESCO
    DELIVERY ANYWHERE - BEST PRICING - FAST!

    Lighten your load by buying 50lb. bags at bulk rates. From 50lb. bags to Jumbo Sacks to Bulk Loads, CESCO provides packaging to meet your specific job requirements.
    Contact us: 888-772-3726 BlastandPaint.com

  •  
     
     
    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker JPCL Europe

     
    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
     

    © Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com