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Shoprite Shares Slide After Bid Details |
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Posted 27 November 2006 @ 09:44 am EET |
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JOHANNESBURG (AP) - Shares in Africa's biggest supermarket group Shoprite slid more than 7 percent on Monday after the company said it had accepted a lower-than-expected 13.2 billion rand private equity buyout.
Shoprite shares fell 7.11 percent to 26.01 rand by 0719 GMT, lagging a slightly weaker Johannesburg mid-cap index.
Shoprite said late on Friday Brait Private Equity had agreed to pay 26 rand per share for Shoprite under a complex buyout offer. The stock hit an all-time high of 28 rand ahead of the announcement.
Despite the price, analysts say the deal is likely to be accepted by shareholders since Chairman Christo Wiese holds a major share of the voting rights.
"It really looks like this thing is going to go through so people are just adjusting to the offer price," said one Johannesburg-based trader.
The deal is the biggest private equity buyout in South Africa and comes as foreign private equity firms step up their activity in the country.
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