Blackstar Share Discussion Threads

[poco a poco] 12/4/2011 13:59

TIDMBLCK

RNS Number : 6057E

Blackstar Group PLC

08 April 2011

Blackstar Group Plc

("Blackstar" or the "Company")

Result of General Meeting

On 23 March 2011 Blackstar announced that its Board of Directors ("the Directors") had decided to seek a listing of Blackstar's Shares (the "Shares") on the Alternative Exchange of the Johannesburg Stock Exchange ("ALTx") with the aim of enhancing the liquidity of the market in the Shares and broadening the shareholder base of the Company. On that date, the Company also announced its intention to undertake a placing (the "Placing") of up to 15 million new shares largely to South African investors, in order to meet the ALTx requirement to maintain a sub-register in South Africa representing approximately 10 per cent of its issued share capital.

As previously disclosed, in the interests of keeping the costs and timing associated with the Placing to a minimum, the Directors concluded that the Placing Shares should be placed with a limited number of potential investors which may include one or more existing shareholders, without offering all of the existing shareholders the opportunity to participate in the Placing on a pre-emptive basis. In order to proceed in this way, it was necessary to obtain shareholder approval for the disapplication of pre-emption rights at a general meeting of shareholders.

At the general meeting of shareholders held earlier today, all resolutions were duly passed. The resolutions proposed were passed with over 99% of the votes cast in favour of each resolution.

The Board continues to expect to have completed the Placing by the end of May 2011, with the ALTx Listing expected to take place in early June 2011. The Company will update shareholders on the progress of the ALTx Listing and the Placing as and when appropriate.

For further information, please contact:


Blackstar Group Plc John Kleynhans [phone]
Collins Stewart Europe
Limited
Nominated Adviser & Matt Goode
Broker Owen Price [phone]
------------------------ ---------------- ---------------------

This information is provided by RNS

The company news service from the London Stock Exchange

END

[poco a poco] 12/4/2011 13:58

TIDMBLCK

RNS Number : 1939E

Blackstar Group PLC

04 April 2011

Blackstar Group Plc

Disposal of Investment

Blackstar Group Plc ("Blackstar") is pleased to that it has entered into a conditional agreement with Robor (Pty) Limited ("Robor") to dispose of the Baldwins division, a 100% subsidiary of KMG Steel Service Centres (Pty) Ltd ("KMG") in exchange for an issue of 5% of the issued share capital of Robor. The agreement is subject to Competition Commission approval as well fulfillment of certain conditions in transaction of this nature.

Background

KMG, a 87% owned subsidiary of Blackstar, consists of two divisions namely Baldwins which focuses on carbon steel, Stalcor that trades in stainless steel and aluminum and a 100% held subsidiary called Global Roofing Solutions (Pty) Ltd ("GRS") a steel roofing specialist. Over the last two years KMG has struggled due to the depressed state of the South African construction industry. In light of this Blackstar reassessed its exposure with regards to this investment. The Baldwins division has been the problem area within KMG where all the trading losses occurred. Baldwins requires capital and a stable market for a turn around in its fortunes. In light of this Blackstar decided to sell the division. KMG's other subsidiaries, Stalcor and GRS are both profitable.

Terms of the transaction

The basic terms of the transaction will involve the sale of the Baldwin's (carbon) division (comprising fixed and intangible assets) to Robor in exchange for an issue of 5% of the shares in Robor with a value of approximately R50 million, based on the audited net asset value of Robor as at 30 September 2010. In addition, Robor will purchase Baldwin's carbon stock at the prevailing market rate in cash and assist KMG in collecting the outstanding debtors of the business at completion. The proceeds from collecting Baldwin's outstanding debtors will be used to settle trade creditors and repay a significant portion of KMG's working capital facilities.

The 5% equity shareholding in Robor will be transferred to Blackstar from KMG and a Blackstar representative will join the board of Robor. Blackstar's equity stake in Robor will allow Blackstar to retain exposure to the turnaround in the Baldwin division. Robor is a diversified business with a strong balance sheet and pays regular dividends to its shareholders.

The transaction will also permit the continued restructuring of KMG, and should enhance the profit potential of its remaining assets of Stalcor and GRS, and will allow Blackstar to separate its steel interests into two distinct areas, being Robor and KMG via its subsidiaries Stalcor and GRS. The Directors believe that a decentralised structure will result in annualised cost savings of approximately R100 million and will also allow each of these businesses to grow independently.

Background on Robor

Robor is the largest tube and pipe manufacturing business in Southern Africa, with a leading position in most of its markets. The majority of Robor's earnings are generated from the manufacture of small, bore-welded carbon and stainless steel tubing and piping using hot rolled steel supplied by Arcelor and Evraz. Additional earnings are generated from divisions focused on related products and services. Robor's products are used by a wide range of industries including construction, mining, automotive, agricultural, petrochemical, engineering, broad industrial, and general infrastructural projects such as power stations, railways and stadiums. Robor exports to over 50 countries worldwide.

Robor was acquired from Barloworld Limited in 2006 by management and Rand Merchant Bank and has to date produced consistent returns for its shareholders under Rand Merchant Bank and management ownership Further information on Robor can be found on its website www.robor.co.za.

The Transaction is expected to complete shortly and a further announcement will be made in due course.

For further information, please contact:


Blackstar Group Plc John Kleynhans [phone]
Collins Stewart Europe
Limited Matt Goode [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

END

DISZMGGDGFZGMZM

Blackstar Investors (LSE:BLCK)
Historical Stock Chart
1 Year : April 2010 to April 2011

[poco a poco] 12/4/2011 13:56

TIDMBLCK

RNS Number : 4592D

Blackstar Group PLC

23 March 2011

Blackstar Group Plc

("Blackstar" or the "Company")

Trading update and proposal to obtain a listing on the ALTx of the Johannesburg Stock Exchange and proposed private placing of up to 15 million new shares.

Trading Update

The Company's main highlight in 2010 was the return from its investment in Litha Healthcare Limited ("Litha"). At year end, Blackstar owned 45% of Litha. The Litha share price increased some 193% from 1 January 2010 to 31 December 2010. Blackstar's investment in Litha is held using the equity accounting method. Had the investment in Litha been accounted for at fair value, it would have been valued at GBP38.9 million and this would have resulted in an additional gain of GBP24.5 million and an increase in net asset value of 33 pence per share at year end.

However, Blackstar has been affected by our exposure to the steel industry though KMG Steel Service Centres (Pty) Ltd ("KMG"). KMG has continued to be negatively affected by the local steel market and depressed state of the construction industry. Blackstar's consolidated income statement will be adversely affected by the recognition of our share of KMG's losses for 2010 and the impairment of the KMG's intangible assets and goodwill recognised on acquisition, all of which have arisen as a result of KMG's poor performance. Subsequent to year end, Blackstar has facilitated a transaction that will involve the sale of one of KMG's divisions and the restructuring of the KMG group.

The success of Litha together with the pleasing performance of certain of Blackstar's other investments, such as Ferro Industrial Products (Pty) Limited has more than offset the losses and write downs in KMG. Another notable highlight during the year was the realisation of Blackstar's indirect investment in Mvelaphanda Resources Limited, which generated an overall profit since acquisition of GBP8.5 million for Blackstar.

During the year Blackstar continued its share buy-back programme with the repurchase of 4,317,495 shares representing5.5% of the Company's issued ordinary share capital. In addition Blackstar paid its maiden dividend of 0.065 pence per Share.

Proposal to obtain a listing for the Shares on the ALTx

The Company's shares (the "Shares") continue to trade on AIM at a significant discount to the net asset value per issued Share calculated by reference to the value of the Company's underlying investments as determined by the Board for the purposes of preparing the latest management accounts of the Company. In addition, the ten largest shareholders in the Company together hold in excess of 85% of the Shares in issue and this has resulted in the Shares being relatively illiquid which the Directors believe is one of the causes of the discount.

The Directors believe that both the size of the discount and the concentration of the Company's shareholder base are exacerbated by the fact that South African investors are currently precluded from directly buying Shares due to South African exchange control restrictions.

In the opinion of the Board, South African investors are likely to be more familiar than the typical AIM investor with the Company's assets as these mainly comprise investments in companies which are recognised operators in their respective industries in South Africa. Furthermore, the Company has developed a profile and brand in South Africa and is well known amongst South African institutional investors. The Directors are aware that there is growing interest in the Company from South African investors.

The Directors have therefore decided to seek a listing of the Shares in issue on the Alternative Exchange of the Johannesburg Stock Exchange ("ALTx") which would enable South African investors to invest in the Company through the ALTx. The Directors consider that the ALTx listing in addition to the existing listing on AIM is likely to make investment in the Company more attractive to a broader range of investors, particularly South African investors with a greater understanding of Blackstar's asset base and management. The Directors expect this to unlock value for existing Shareholders through creating demand for the Shares which will help to enhance the liquidity of the market in the Shares and would accordingly be likely to broaden the shareholder base of the Company. Several comparable companies which have obtained listings on the ALTx have benefited from increased liquidity and demand for their shares, which has resulted in increases in their share price.

The ALTx Listing will not affect the ability of shareholders to trade their Shares on AIM, and all shareholders will be able to trade through both AIM and the ALTx, provided they are entered on the South African sub-register.

The Directors estimate that the additional cost of maintaining the ALTx Listing to be approximately GBP13,000 per annum, and they consider this to be an acceptable cost in light of the perceived benefits of the ALTx Listing.

Proposed placing of up to 15 million Shares

It is a requirement of obtaining the ALTx Listing that the Company maintains a sub-register in South Africa representing approximately 10 per cent of its issued share capital. To help meet this requirement, the Directors are planning a placing (the "Placing") of up to 15 million new shares which, when issued, will be included on the South African sub-register. The price at which these Shares will be issued will be no less than GBP0.85 per share (representing a premium of4.94% to the Share price at the close of business on 22 March 2011).

If the Placing is subscribed in full, it is expected to raise gross proceeds of approximately GBP12.75 million for the Company (assuming an issue price of GBP0.85 per Share) and will result in an aggregate of 89.8 million Shares being in issue. The new Shares will, when issued, rank pari passu in all respects with the existing Shares, including the right to receive all dividends and other distributions thereafter declared, made or paid on such Shares.

Blackstar has expanded its offering into fund management and the Company will apply the proceeds raised from the Placing to continue developing and growing its fund management business. In addition, Blackstar will also apply additional capital raised to fund investment opportunities in its pipeline most notably through Litha.

The Board currently expects to have completed the Placing by the end of May 2011, with the ALTx Listing expected to happen by early June 2011. The ALTx Listing is not conditional on the Placing being completed. The Company will update shareholders on the progress of the ALTx Listing and the Placing as and when appropriate. Under the rules of the ALTx, the Company is required to produce a prospectus to accompany its admission to trading on the ALTx. The prospectus will be distributed to Shareholders in due course.

In the interests of keeping the costs and timing associated with the Placing to a minimum, the Directors have concluded that the Placing Shares should be placed with a limited number of potential investors which may include one or more existing shareholders, without offering all of the existing shareholders the opportunity to participate in the Placing on a pre-emptive basis. In order to proceed in this way, it is necessary to obtain shareholder approval for the disapplication of pre-emption rights.

Accordingly, a circular will be distributed to all shareholders detailing the resolutions that will need to be passed at a general meeting that will be held on 8 April 2011 to implement the proposals detailed in section 2 above.

The Board believes that the proposed resolutions are in the best interests of the Company and its shareholders. Accordingly, the Board recommends that shareholders vote in favour of the resolutions to be proposed at the general meeting, as they intend to do in respect of their own holdings of 974,486 Shares (representing approximately 1.3 per cent. of the Shares in issue).

Management have consulted with the holders of a majority of the Shares of Blackstar and they have indicated that they are happy with the proposals set out in the circular and will vote in favour of the resolutions. Blackstar Managers Limited and funds associated with Andrew Bonamour have indicated that they will vote in favour of the resolutions in respect of their holdings amounting, in aggregate, to 16,077,993 Shares (representing 21.5 per cent. of the Shares in issue).

For further information, please contact:


Blackstar Group
Plc John Kleynhans [phone]
Collins Stewart Matt Goode [phone]
Europe Limited 8350
Nominated Adviser
& Broker

[wessie] 23/3/2011 10:18

Still going, seems a reasonable announcement today.

[poco a poco] 17/3/2011 12:14

One year since any posts !

Has this thing died ?

[doowle] 14/3/2010 20:59

given how the rand has moved, this thing is going to do very well I reckon.

[kir] 04/3/2010 07:37

see end of thread

[fred49] 01/3/2010 22:21

What was the name of this company before it became Blackstar?

[fred49] 01/3/2010 22:21

What was the name of this company before it became Blackstar?

[fred49] 01/3/2010 22:20

What was the name of this company before it became Blackstar?

[hectorp] 12/6/2009 15:13

These internalisations of management teams is becoming common - but is sometimes a rip-off or scam for existing shareholders.
I've not studied this one.

[gyy] 10/6/2009 14:15

The Board of Blackstar have announced proposals for a capital reorganisation and the return of up to GBP5 million to Shareholders by way of a Tender Offer. The maximum number of New Ordinary Shares that can be purchased by the Company in the Tender Offer is 7,462,686.

Shareholders will be entitled to tender their shares at a tender price of 67 pence per share on the following basis:- Shareholders of 1,000 shares or fewer will be invited to tender all or none of their shares free from dealings costs,Capital Reorganisation
Each Existing Ordinary Shares of GBP1 will be sub-divided into 67 New Ordinary Share and 33 Deferred shares of GBP0.01 each. (Every 67 new ordinary shares will be consolidated into 1 new share.)

If you wish to tender all or some of your shareholding, please let us have your instructions by return of email no later than 22nd June 2009 (9am). Shareholders who have received this notification via royal mail, please let us have your instructions by completing the bottom of the page and returning to us in the enclosed pre-paid envelope.

Before deciding the course of action you wish to take, you are reminded that you should be aware of the risks involved, the tax and other implications, and if appropriate, consult an appropriately qualified advisor. (Please note that The Corporate Action Dept is not a qualified advisor and can NOT advise in any way with regard to this offer.)

[mangal] 08/6/2009 08:28

Ok, I see why:


Hectorp, can we have charts etc in the header, please? tia.

[mangal] 08/6/2009 08:25

Up 23% today. Anyone know why?

[hectorp] 08/3/2009 14:23

Should return in long and short markets.
Nw Fund for ISA etc.
Should start 31 /3/09.
Managed by a Mr Devlin.

[gac100] 02/3/2009 12:12

Yes, a nice rise since xmas, and more than recouped my loss from a year ago. Not sure it'll go a lot higher until there's a definitive statement from the company on NAV, but I continue to hold as it must still be trading at a significant discount.

[corrientes] 27/2/2009 09:31

Going up significantly on low volumes. Just what the doctor ordered.

[gac100] 05/12/2008 13:54

Having got out of this earlier in the year at a loss, its popped back on to my radar again with what must be a huge discount to NAV and director buying today. Think I'll have a closer look at what's been going on with it since the spring. Anyone taking any interest in this at the moment?

[roughjustice] 08/8/2008 23:04

Tipped on - seventh episode

[gac100] 19/3/2008 07:37

Preliminary results



NAV per share 133p at 31-Dec-07

(Previously 129p at 30-Sep-07; 101p at 31-Dec-06)

"The underlying investments performed well over the period under review showing, that despite world market weakness, the infrastructure story in South Africa remains strong ... We continue to believe that attractive opportunities exist in South Africa where investors can earn above average returns. We predict 2008 will be a difficult year given the power shortages in South Africa and the upheaval in the world markets. In South Africa, the government's fixed investment spend continues, reaching 21.2% of GDP in the third quarter of 2007. Real fixed investment spending should grow another 13% to 16% this year. This growth will benefit many of Blackstar's investments."

[gac100] 25/1/2008 07:21

"Blackstar today announces the audited interim results of the Company for the
nine months ended 30 September 2007 which show net investment income of £24.465
million, earnings per share of 27.61 pence and net asset value ("NAV") per share of 129 pence ..."

[canscott] 13/12/2007 11:15

Nice 3.5p up.