The group says though Mpact reported good growth in the year to end-December, the levels of debt in the company are of concern
Unrelenting in its pursuit to acquire Mpact, Caxton said it is concerned by the debt levels at the industrialist group — where the publisher already commands a 34% stake — announcing it is pursuing a challenge on aspects of the packaging manufacturers corporate governance.
Early in March Mpact reported its net debt of R2.33bn had increased from the R1.76bn of 2021 mainly owing to cash outflows in respect of capital expenditure investments of R1bn, as well as increased working capital. Caxton has had its sights on Mpact for years but negotiations over a full takeover have failed, leading to a legal battle.
Caxton, which has a R3.5bn market capitalisation, has alleged Mpact is soliciting support from Golden Era to oppose its merger and that it filed “secret representations” and affidavits with competition authorities. Labelling the input cost increases as “unprecedented”, Caxton said the local and international paper and board mills were oversubscribed and access to supply was limited, combined with increased freight rates.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Prof Daya Reddy calls for unity on first day at the helm of troubled UCTThe new vice-chancellor takes over during turbulent times at the University of Cape Town
Read more »
Prof Daya Reddy calls for unity on first day at the helm of troubled UCTThe new vice-chancellor takes over during turbulent times at the University of Cape Town
Read more »
'It's the perfect and natural next step' — Pabi Moloi replaces Faith Mangope on Power 98.7Faith Mangope bids farewell to Power 98.7 as Pabi Moloi takes over her slot.
Read more »
Mike Ward takes second win in DJ RallyThis regularity trial commemorates the Joburg-Durban race held between 1913 and 1936
Read more »
GPT-4 unveiled: OpenAI's latest language model takes creative leap | The Citizen🤖 GPT-4 is here! OpenAI's newest language model is redefining the chatbot game! 🚀 OpenAI AIRevolution ChatGPT TheCitizenTechCheck Read more about GPT4's features and potential uses here ⬇️
Read more »
WATCH | Busisiwe Mkhwebane finally takes the stand at her impeachment inquiry | City PressWatch | Suspended Public Protector Busisiwe Mkhwebane finally took to the witness stand on Wednesday at the Section 194 inquiry into her fitness to hold office. Watch the hearing here:
Read more »