GijimaAst denies UK bid

Johannesburg, 23 Jan 2008

Market speculation that locally-listed GijimaAst is the subject of a ₤100 million (R1.4 billion) takeover bid is inaccurate, says the company.

Yesterday, ITWeb received a detailed tip from a person assuming the identity of a well-known market watcher. ITWeb has since established the e-mail address is not in use by this personality.

The tip claimed GijimaAst was to be bought by a British telecommunications company, but did not reveal the identity of that company.

"The UK telco will de-list the company, buying the entire issued share capital. The offer will be around R1.43 per share, depending on the 30-day volume-weighted average price. Once de-listed, black shareholders will take a 30% empowerment stake in the company. These shareholders have already been lined up. The new entity will be a full service ICT provider with domestic network capabilities offered under an ECNS licence," said the tipster.

However, GijimaAst CFO Carlos Ferreira says the tip is patently inaccurate.

"At this stage, there is absolutely nothing on the table from a UK bidder, or any other company for that matter. This kind of speculation is rife at the moment as we are quite active in the market. We are approached from time to time and, of course, there are our own options that we are looking at.

"Nevertheless, it is our responsibility to inform shareholders as soon as negotiations start. There are no discussions under way at the moment," adds Ferreira.