NZX pours scorn on JSE valuation of South African bond exchange
03 November 2008 | 5866 views | 0
The New Zealand Stock Exchange, the largest shareholder in the Bond Exchange of South Africa (Besa), has poured cold water over the Johannesburg Stock Exchange's proposed R173 million takeover of its compatriot.
NZX, which acquired a 22% stake in Besa earlier in October, has rubbished the JSE's R90 per share offer as "extremely low" and "very significantly below fair value".
The NZX says the JSE offer values the company at only R6 million above its cash worth in a dissolution and fails to recognise the strategic value and synergies that would come from running the business for profit.
In a statement, the NZX says: "Accordingly, while NZX as a shareholder will await the view from the Besa Board and its financial advisors regarding the valuation by JSE of Besa...NZX would not support a takeover at this offer price."