BTG to make odd-lot offer

Bytes Technology Group has announced an odd-lot offer in a bid to reduce costs associated with shareholders who own fewer than 100 shares.

The group says in a notice to shareholders that about 1 250 out of its 6 915 shareholders hold fewer than 100 shares each, with a total ownership of just 36 114 shares, or 0.02% of the total.

At this morning`s share price, the total shareholding is worth R442 397.50.

It adds that there are substantial recurring costs involved with the administration of such odd-lot holdings, but at the same time odd-lot holders find that the dealing costs of selling their holdings often amount to more than the value of the shares.

The group`s board has decided to implement an odd-lot offer to reduce BTG`s costs as well as assist the odd-lot holders. It says the shareholders who wish to top up their odd-lot holding to 100 shares will also have the opportunity to do so.

In terms of the offer, odd-lot holders will be able to buy enough shares at a price equal to the volume-weighted average BTG share price for the five trading days up to the end of 13 July to increase their holding to 100 shares.

They may also sell their odd-lot holdings at the offer price plus 5%, or opt to retain their odd-lot holdings.

The group says those odd-lot holders who do not specifically choose one of the options will be deemed to have agreed to sell their odd-lot holdings.

Once shares sold by odd-lot holders have been transferred to odd-lot holders wanting to increase their holdings, BTG is to buy the excess. If there is an excess demand, BTG will sell or issue shares to make up the shortfall.

The BTG share, which closed 5c down at 1 225c on the JSE yesterday, was untraded early this morning.