|
|
|
|
|
|
The eBearing News
April 20, 2005
Invicta Set to Acquire
Full Ownership of Bearing Man
copyright © 2005 eBearing Inc.
Invicta Holdings Ltd. (South Africa) is set to acquire the remaining shares it does
not already own Bearing Man Ltd. (South Africa), then delist the company.
The Johannesburg Stock Exchange (JSE) listed company, Bearing Man is the largest distributor
of bearings, power transmission and industrial equipment across South Africa. Founded in
1974, it is also the dominant supplier of bearings and power
transmission equipment to sugar processors, paper
and steel mills, motor parts and accessories, as well as mining, earthmoving, and agriculture.
With almost 100 branch locations, and offering 24 hours a day, 7 days a week service, Bearing
Man is not only South Africa's dominant bearing distributor, but sells one out of every
three bearings there. The company has locations across South Africa, Namibia,
Swaziland, Botswana, Mozambique and Zambia.
Invicta, which owns 60.65% of Bearing Man's outstanding shares, notified the company
it is developing a buyout offer for the other shareholders.
The preliminary offer amounts to 7.5 Rand for each Bearing Man share, or
a share swap of one Invicta Holdings share for each 2.5 Bearing Man shares.
Alternatively, Bearing Man shareholders can elect a combination of Invicta
shares and cash.
Invicta said acquiring full control of Bearing Man would allow it to realize economies
of scale, improve operating synergies between the two companies, eliminate duplicate
costs, and reduce overhead.
Bearing Man revealed that almost 80% of the affected shareholders have notified Invicta
they intend to tender their shares under the stock / swap offer.
Invicta has not detailed the potential effects the buyout would have on either
company's financial or operating results, prompting Bearing Man to offer a caution
for investors against speculative trading.
Bearing Man recently celebrated 30 years in business, inaugurating a new 195,000 square foot
corporate home office near Durban.
Bearing Man (ticker BRM) has been publicly traded on the JSE since 1984. It acquired
Fenner Power Transmission SA from UK-based FPT Group Ltd. in August 1998 and Invicta Holdings'
Bearing Division in 2001. Bearing Man and Invicta Bearing and Transmission are
run as separate entities.
In September, Bearing Man won one of only four 2004 Sustainable Growth
Awards given to a South African business. Over the past five years, it showed sales growth
of 104%, along with operating profits up more than 175%. The Sustainable Growth Awards are
designed to recognize businesses which are not only South Africa's fastest growing but also
contribute the most to the overall economy.
|
|
|
printer-friendly version
|
|
- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
|
|
eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
|
|
|
|
|
| |
eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
|
|
|
