Mustek has informed shareholders that Novus has acquired an over 35% stake in the company, triggering a mandatory buyout offer as required by the Companies Act.
Alternatively, shareholders can elect to sell for R7 plus one Novus share, or trade one Mustek share for two Novus shares.Novus noted that they must obtain several approvals before the deal can proceed, including regulatory approvals from the Competition Tribunal and potentially the South African Reserve Bank.The long stop date for obtaining the necessary consent is 31 July 2025.
Novus said it has delivered an irrevocable unconditional guarantee issued by Investec for the maximum amount payable under its mandatory offer, which is R335 million. Novus’ acquisition of a sizeable stake in Mustek and subsequent mandatory offer comes after Umthombo Wealth chief investment officer Alex Duys advised that it could become a target.Mustek was a good investment opportunityMustek’s low valuation also makes it an acquisition target. Many companies may see it as an opportunity to buy the distributor at a bargain price.