A consortium of investors wants to buy out shareholders in the ICT group Alviva Holdings in a R2.5 billion deal.
On Wednesday, its share price jumped 10% to R26.75 following the offer.
The consortium consists of Tham Investments and an individual named P Ramasamy, who together currently own almost 19% of Alviva. Some Alviva managers and Day One Asset Management, which is part of Peregrine Capital, are also part of the consortium.
The consortium is offering R28.00 per share for the shares that they do not yet own.
Alviva provides information and communication technology products and services, and has stakes in a variety of African tech companies, including the IT distributor Pinnacle, Axiz, Datacentrix, Centrafin and GridCars, a manufacturer of electric vehicle charging points.
If executed, the transaction will see Alviva delisting from the JSE. It will become just the latest in a string of delistings from the bourse. Earlier this year, Adapt IT, a software provider, delisted – followed by PSG. Mediclinic and Distell are also exiting the bourse.
Letters of support for the deal have been received from several current shareholders, including Old Mutual, which has a 5% stake.
In explaining the rationale for the deal, the statement said that "the proposed transaction will result in Alviva becoming a majority black-owned, privately held, information and communications technology champion".
The group's share price climbed by almost 70% over the past year.