Bell's circular raises doubts

Claims it did not disclose concert party’ trade volumes from six months before it received a letter of interest.

- Roy Cokayne

Doubt has been cast on whether the circular distributed by JSE-listed Bell Equipment on a proposed R762.5 million scheme to buy out most minority shareholders fully complies with the legal requirements of the Companies Act.

The offer price of R53 per share to minority shareholders, which is just below Bell Equipment's net asset value (NAV), has been described as "snoep" and not a gift.

This is despite the offer price to shareholders by IA Bell and Company Proprietary Limited (IAB), an investment holding company owned by representatives of the founding family and affiliates of Bell Equipment, being at a premium of 82.3% to the 30-day volume-weighted average traded price of Bell Equipment shares on the JSE of R31, as at Thursday, 11 July.