Trencor to delist following successful fulfillment of liquidation condition
Image: Gianluigi Guercia / AFP
Stocks of cash holding company Trencor plunged by 1.9% to R1.06 per share early on Thursday following an announcement that it has fulfilled the final condition required for its impending delisting on the JSE after 70 years and voluntary winding-up.
This news follows prior communications in May, June, and earlier this month, which outlined the company's plans to gradually cease operations while ensuring shareholders receive their due dividends.
Trencor is the latest company to announce it is delisting following AH-Vest's announcement in June to delist from the JSE's AltX board at a time when the JSE has undertaken several initiatives to make it easier and less costly for small and medium-sized businesses to list.
In 2024, there were about 14 company delistings from the JSE, continuing a multi-year trend of a contraction in the number of listed companies.
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As detailed in the company's latest update, the key condition—known as the JM12 Condition—has been completed, allowing Trencor to proceed to the next stages of the proposed transaction.
The JM12 Condition, as stipulated in section 80(3)(b) of the Companies Act, necessitated the issuance of a JM12 certificate from the Master of the High Court, which permits the delisting efforts to take effect without the requirement of security being furnished to the court.
Following this pivotal certification, Trencor has laid out an exact timeline for the implementation of the proposed transaction, ensuring that all shareholders are prepared to take the necessary steps for their investments.
The company said July 29 will be the last day to trade in shares and only those who trade before this date will be eligible to receive the special dividend.
July 30 will mark the suspension of trading of Trencor shares on the JSE and August 1 will be the official record date for entitlement to the special dividend.
On August 4, both dematerialised and certificated shareholders will receive the special dividend of 90 cents per share and the following day will mark the termination of listing.
The company will then be placed into liquidation on August 6 or as soon as reasonably Wednesday, 6 August possible thereafter.
Trencor said shareholders should be aware that post this timeframe, they will not be able to dematerialise or rematerialise their shares.
Furthermore, the dividend distributions will carry tax implications, and as such shareholders who are exempt from dividend withholding tax will receive the gross dividend of 90 cents per share.
A dividend withholding tax at the rate of 20% will be applicable to shareholders who are not exempt from this tax and who are not subject to a reduced rate in terms of any applicable agreement for the avoidance of double taxation between South Africa and such shareholders' country of residence, resulting in a net dividend of 72 cents per share to these shareholders.
Shareholders uncertain about their tax status or other concerns are advised to consult with a professional advisor swiftly.
At the time of the dividend declaration, Trencor's issued share capital stood at R867 million, represented by 173.5 million ordinary shares of 0.5 cents each.
This timely update reaffirms Trencor's commitment to ensuring a smooth transition for its shareholders as it moves towards the final stages of its operational closure.
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