Brikor, manufacturer of clay bricks, roof tiles and clay pipes, which also has a coal segment, said yesterday that it had become aware of a third party (potential offeror) that had approached its major shareholders to acquire all their shares in the firm.
“Dependent on the level of success, the acquisition may result in a general offer being made by the potential offeror to the remaining Brikor shareholders to acquire their shares in Brikor in terms of the Companies Act, 71 of 2008,” it said.
Shareholders were advised to exercise caution when dealing in Brikor’s shares until a further announcement was made.
The share price was flat on the news in intraday trade, at 19c. However, the share price has risen 111% in the past five years.
Brikor, with a market cap of R159 million, posted its financials in May for the year ended February 28, 2022 with headline earnings per share down by 47.6% to 1.1c per share, while earnings per share tumbled 84.2% to 0.3c per share. Revenue rose by 5.7% to R27.7m.
The directors said at the time the results reflected “a positive financial performance, despite operational challenges due to excessive rainfall, continued power interruptions and unreliable railway infrastructure”.
Despite the challenges in the local coal markets, the group realised a profit after taxation of R2.8m from R12m the previous year.
In June, Brikor celebrated the launch of Kopanela Mining by breaking ground on the Grootfontein mine in Nigel, Gauteng.
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