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A Saudi trader monitors stocks at the Saudi Stock Exchange in Riyadh.
Saudi Arabian company Zahid Group’s bid to take over South African industrial giant Barloworld has hit a snag.
Shareholders of Barloworld voted against the buyout plan of Newco, a consortium of investors that include Entsha and Zahid Group, on Wednesday.
Last December, Barloworld confirmed Newco’s intention to buy the company’s entire issued share capital for ZAR 120 ($6.5) per share, valuing it at approximately $1.25 billion.
The deal did not get the requisite majority of votes from shareholders, thus a standby offer has been triggered, the Johannesburg Stock Exchange-listed company said.
Zahid Group is a distributor of heavy equipment machinery in the region.
(Writing by Cleofe Maceda; editing by Seban Scaria)
