Metair initiates squeeze out transaction - CNBC Africa

Metair initiates squeeze out transaction

Southern Africa

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Metair's companies manufacture and distribute products for the automotive industry. PHOTO: Getty Images

This is following the company’s announcement in March regarding the closing of a mandatory tender offer (MTO) to the minority shareholders of Mutlu Aku ve Malzemeleri Sanayii Anonim Sirketi (Mutlu Aku).

“Metair is pleased to notify shareholders that, acting through its subsidiary Metair Aku, [it] has commenced with the initiation of a squeeze out transaction, pursuant to which Metair Aku shall acquire all the remaining shares in Mutlu Aku,” it said.

(READ MORE: Metair reports marginal 2013 FY results)

The JSE-listed company, which holds and manages a portfolio of companies that manufacture and distribute products for the automotive industry, also stated that the successful implementation of the squeeze out would result in Mutlu Aku becoming a wholly-owned subsidiary of [DATA MTA:Metair].

“The squeeze out remains, in terms of Turkish regulations, subject to the approval of the Capital Markets Board of Turkey,” Metair said.

Following Metair’s initial announcement regarding its plan to acquire 100 per cent of Turkey’s Mutlu Holdings, chief executive Theo Loock stated that the acquisition was significant.

(WATCH VIDEO: Metair to buy Turkey battery maker)

“The deal automatically lets us meet our 50/50 strategy. It gives us spare capacity and gives us access to the European market,” Loock told CNBC Africa at the time.

“Geographical diversification balances out the risk. That was the strategic objective of buying the Mutlu Aku battery business in Turkey.”