In a notice, RPC Data independent directors said the offer would comprise both the management buy-out offer and a share buy back, which once successfully concluded would result in a director-led consortium taking full control of the listed IT firm. RPC Data halted its trading on the Botswana Stock Exchange (BSE) in April ahead of the announcement of a full takeover offer. The firm's board had said an offer would be received within three weeks of the halt on April 24. According to this week's notice, the 65.6 thebe price being offered to investors, represents a 124 percent premium to the weighted average price that its shares traded at in the past six months on the BSE. Stockbrokers Botswana research analyst, Ngodya Chimbwete projected that the offer to shareholders would be met positively.
"RPC Data is quite the illiquid stock that has struggled to return value to shareholders; mostly trading at significant discounts to Net Asset Value," he said."In that regard I would assume shareholders would be pleased with this decision to return cash to shareholders considering recent share price performance, more especially at a 119 percent premium to its current share price." However, Chimbwete also added: "Shareholders who bought in the company at the Initial Public Offer price which was above P1.00 would have lost significant value (and) thus may show some resistance or accept the offer in fear of further loss in value."RPC Data directors said the management buy-out and share buy back were both part of efforts to convert to return value to the firm's shareholders, following years of depression."The board, having reviewed the environment in which the company is operating and the future prospects for this type of business and the costs associated with the listing of company shares, measured against the benefits associated with a BSE listing, concluded that the company was better suited to an owner-managed structure."(In addition), the cost of remaining listed on the BSE far outweigh the benefits."
