Bloomberg News

Paracon Gains to Two-Week High on Takeover Offer From Adcorp

September 06, 2011

(Updates with transaction details from second paragraph)

Sept. 6 (Bloomberg) -- Paracon Holdings Ltd., a South African computer-services and recruitment company, rose to the highest price in two weeks after Adcorp Holdings Ltd. offered to buy the company for about 689 million rand ($97 million).

Adcorp dropped after South Africa’s largest diversified employment-services company said it offered to pay 1.97 rand per share for Paracon.

Paracon investors can also opt for one Adcorp security for every 13.812 shares they own or choose a combination of cash and equity, the Johannesburg-based companies said in a joint statement today. The cash portion of the deal won’t exceed 265 million rand, the companies said.

Paracon rallied for a second day, adding 2.6 percent to 1.95 rand by 11 a.m. in Johannesburg, the highest since Aug. 22. The stock, which jumped 4.4 percent yesterday, has declined 4.4 percent since the company said it was in unspecified talks on July 6. Adcorp, which has retreated 10 percent over the same period, fell 1.5 percent to 27 rand for a market value of 1.7 billion rand.

--Editors: Vernon Wessels, David Risser

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus