Sefalana Holdings, the parent company of Sefcash, waged an unrelenting share buyback scheme against the minority shareholders in the retail outfit ahead of companies that are already looking for an exit route out of the local bourse.
Sefcash will be some streets ahead of IamGoldÔÇöan international gold mining companyÔÇöthat has already applied for an exit but postponed in the last couple of days. It is believed that the companies are trying to cut-down on listing requirements fees and other extensive requirements, especially after a daunting period of economic meltdown.
However, Sefalana Holdings has offered the existing shareholders of Sefcash share swap on the parent company.
The move has been praised by Capital Securities, which said although the local bourse might be losing one company in terms of head count, the existing shareholders of Sefcash will be transferred to a more lucrative Sefalana Holdings.
“They are getting a share swap from a subsidiary to a parent company,” head of Capital Securities, Gregory Matsake, said.
Sefalana Holdings is taking a walk in the park as it is buying back 20 percent stake of the company that it did not own. The move fell short of five percentÔÇöfrom the 25 percent that would have made it difficult if not impossible for Sefalana Holdings to engage in share buyback.
The latest developments will mean that Sefcash will directly report to Sefalana Holdings without any divided attention.
Sefcash, which used to be called Metsef, saw 80 percent of its shares falling into the hands of Sefalana Holdings following a court settlement between Metcash of South African and Sefalana Holdings in 2006.
The move set in motion a long terms plan for Sefcash that included the re- negotiation of new trading terms with suppliersÔÇöincluding new rebatesÔÇöre-branding of Metsef, the re-branding of its 29 outlets and the 400 burner stores and, most importantly, to acquire merchandise from overseas in a bid to enhance its stock.
The 37ÔÇôyear old Sefalana Holdings is anchored by retail outlets, property division, Foods Botswana and others.