THE bid by Times Media Group (TMG) for Avusa succeeded on Thursday after 78.54% of shareholders voted in favour of the deal at a general meeting of ordinary shareholders held at Avusa's headquarters in Rosebank.
TMG needed the support of 75% of Avusa's shareholders to effect the deal.
It is hoped the deal will pave the way for a strategy that will turnaround Avusa, which has underperformed financially. The deal will also lead to some changes in directorships, including the trimming of the board from close to 15 members to about nine.
Shares in Avusa extended gains after the vote. At 10.47am, shares had gained or 4.51%, to R22.47.
TMG, formerly known as Richtrau, a unit of Mvelaphanda with shares in Avusa, had offered to buy Avusa for R24 a share in cash.
The bidders’ plan is to turn around the company, which has experienced declining profits for two successive reporting periods. TMG’s plan is to address "key issues inhibiting Avusa".
These include a "disparate and unstable board, divergent shareholder views, lack of a coherent strategy, inefficient processes and significant cost structures".
The bidders also plan to break down existing silos in the company to allow for more synergies and collaboration among the different business units.
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