Verimark putting wheels in motion to delist

Verimark Holdings have announced their half-year revenue and intention to delist from the JSE. Again.

On Monday, Verimark Holdings announced that the Van Straaten Family Trust was intending to acquire remaining shares in the business and to delist it. They also announced their revenue for the six months ended 31 August. 

Van Straaten Family Trust is the majority shareholder of Verimark and holds about 64 percent stake in the company. Van Straaten intends to buy the remaining minority shares in the company and delist Verimark Holdings from the Johannesburg Stock Exchange (JSE).

This follows an attempt to go private in 2009, which was prevented by the minority shareholders. Verimark CEO, Michael van Straaten is now offering a buyout to all minority shareholders so the company can be delisted successfully this time.

The results revealed that the company’s revenue fell one percent to R207.5 million due to the country’s recession and most retailers tightening up on stock holdings, which caused lower consumer confidence. 

Verimark lost about two-thirds of its market capitalisation since listing in July 2005. The of the delisting announcement lifted the company’s stock 11 percent.