Takeover offer may breathe life into struggling Lyons

Posted On Wednesday, 17 September 2003 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

A proposed takeover bid by Icarus Investment Corporation has thrown it a lifeline

Property-Housing-ResidentialAlthough listed investment holding company Lyons Financial Solutions Holdings reported an attributable loss of R45m for the financial year ended May 31 2003, casting doubt on its ability to continue as a going concern, a proposed takeover bid by Icarus Investment Corporation has thrown it a lifeline.

Operating executive director Des Magua, who joined Lyons after the review period, said Icarus Nominees, trading as Icarus Investment Corporation, had made an offer to Lyons to buy all the assets and liabilities, which the board accepted.

But they also reserved their right to change their offer to a Section 440K offer, which is basically an offer to buy out all minority shareholders.

"That's currently in progress and that should be completed towards the end of October," Magua said .

Garry Fromentin, who was ousted as CEO towards the end of last year, is the man behind Icarus Investment Corporation and has made the takeover bid.

Magua, who will stay on as operating executive director, said that if Icarus obtained sufficient shareholding they would delist Lyons. "Failing that they will continue as a listed entity with minority shareholding," he said.

"Currently we are subject to the 440K offer and we assume the board has no reason to believe anything to the contrary, that the offer will go through and as a result we will be recapitalised. That will take care of any imbalance in the assets and liabilities. That's obviously the prize that we're working towards," he said.

Independent auditors Deloitte & Touche said in their report that Lyons Financial Solutions Holdings, its main operating subsidiary, had incurred a net loss of R45m and that liabilities exceeded assets by R13m at the date of the audit.

The company reported attributable earnings of R12,3m last year. It also reported a headline loss of R28,8m compared with earnings of R185000 last year.

The report said that this indicated the "existence of a material uncertainty that may cast doubt on the ability of Lyons to continue as a going concern in the foreseeable future".

The company, which also has a 45% equity stake in the R400m property fund Lyons Corporate Lease Fund, reported that the year under review reflected a "turbulent period" in its history.

The company's gross revenue decreased substantially to R12,03m from R32,4m the previous year, which management attributed mainly to the closing down of the structured finance division and the downsizing of operations, which resulted in fewer deals being consummated.

The company said its rationalisation programme increased staff costs due to retrenchment packages paid.

 

 

Last modified on Friday, 09 May 2014 22:06

Most Popular

Tshwane Regional Mall Grand Opening date set

Aug 31, 2019
  TSHWANE REGIONAL  MALL
24th October 2019, the long-awaited day earmarked for the grand opening of Tshwane…

Attacq Ltd and Tricolt break ground on Ellipse Waterfall

Aug 30, 2019
 13 2
Today Attacq Ltd the JSE listed REIT developing Waterfall City, and Waterfall Logistics…

Redefine Properties appoints Daisy Naidoo as independent non-executive director

Aug 30, 2019
 STRATE 1
Redefine Properties appoints Daisy Naidoo as independent non-executive director.

Founder Marc Wainer retires from Redefine Properties

Aug 31, 2019
 MARC WAINER
JSE listed diversified real estate investment trust Redefine Properties today announced…

Eris Property Group appoints successive CEO Barend de Loor

Aug 30, 2019
 BAREND DE LOOR
Eris Property Group has appointed a new Chief Executive Officer (CEO). Barend de Loor…

Please publish modules in offcanvas position.