by Alec Hogg
One of the benefits of being based in the JSE Media Centre is bumping into old friends on their results roadshows. Which is how I got talking yesterday to highly rated private education group Curro’s CEO Chris van der Merwe.
Curro, you may recall, reportedly considered turning hostile in last month’s bid to acquire private education competitor Advtech. Van der Merwe says his offer had the support of around 60% of Advtech’s shareholders, primarily because they saw it as an opportunity to create a R20 billion continental champion. But when Advtech’s board gave it the thumbs down, Curro’s CEO cried off.
Any takeover is a challenge. Going hostile means no due diligence and not seeing what’s under the target company’s hood. Van der Merwe reckons a bigger consideration, though, if Advtech’s management team didn’t buy into the dream, it would have been uphill all the way. And with so much runway in the sector, why waste the energy? Sometimes the rational approach is to put ego in your pocket and walk away.
Yesterday’s top stories:
Breathtaking. The world according to SAA chair Dudu Myeni
Bad news for OPEC, Sasol – some US frackers now profitable at oil under $30
Froneman gets allies as SA mining finds its backbone, repels Govt attack
Cyril hints at new approach to ownership of Eskom, SAA and other SOEs
Durban’s ‘controversial’ R300m soccer facility – tenants given eviction notices
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