Vote against Barloworld buyout offer

The proposed buyout of Barloworld by a consortium led by Saudi Arabia's Zahid Group - which would have resulted in the buyout of all the ordinary shares in the group and its delisting from the JSE - failed to obtain sufficient support at a general meeting.

- Roy Cokayne

Moneyweb

Analysts attributed the vote to two of Barloworld's largest shareholders' opposition to the buyout and a protest by shareholders related to governance issues in the proposed buyout process, particularly Barloworld CEO Dominic Sewela's alleged conflict of interests.

The consortium includes a trust for the benefit of Sewela and his family.

The scheme of arrangement special resolution was overwhelmingly rejected on Wednesday - with shareholders owning 63.37% of the Barloworld shares voting against it.