AttBid has made an offer to acquire shareholder shares in RMB Holdings Limited, at R0.47 per RMB Holdings Limited share in cash.
This corporate action at RMB Holdings (RMH) is the result of a significant shift in the company’s ownership structure. Because AttBid crossed a specific ownership threshold (35%), South African law requires them to make this “Mandatory Offer” to all other shareholders.
Who is AttBid?
AttBid is a consortium led by Lebashe Investment Group, a prominent 100% black-owned investment firm in South Africa.
Key Players: The group is led by businessman Tshepo Mahloele.
The Connection: Lebashe has been a long-term investor in RMH. By increasing their stake through AttBid, they are effectively consolidating their control over the company.
The Strategy: AttBid’s move is seen as a way to take a firmer hand in the “monetization” of RMH’s remaining assets (primarily its stake in Atterbury Property) and ensuring the company is wound down or managed in a way that maximizes value for the majority owners.
What Are My Options?
Based on the most recent financial data from RMB Holdings (RMH), here is the comparison between the offer price and the company’s estimated value to help you decide.
The Value Gap: R0.47 Vs. NAV
The most critical factor in your decision is the Net Asset Value (NAV). As of their last major reporting period, RMH’s NAV was estimated at approximately R0.98 to R1.05 per share.
The Offer (R0.47): This is a significant discount (roughly 50% or more) to the reported value of the underlying assets.
The Implication: AttBid is essentially offering to buy your shares for “50 cents on the Rand.”
Why is the Offer so Low?
AttBid’s offer of R0.47 is likely based on the current market price (how the shares have been trading on the JSE) rather than the intrinsic value of the buildings and land RMH owns. They are betting that many shareholders would prefer “cash now” rather than waiting years for the company to sell off its remaining property assets.
Your Options:
| If You Accept the Offer (R0.47) | If You Do Nothing (Hold) |
| Immediate Liquidity: You get cash in your pocket immediately. | Potential Upside: You stand to gain if the company eventually pays out the full NAV (e.g., R1.00) in dividends. |
| Certainty: You avoid the risk of the property market declining or the wind-down taking another 5 years. | Illiquidity Risk: As AttBid buys more shares, fewer people will be trading them, making it harder to sell “normal” shares later. |
| Loss of Value: You are effectively walking away from about half of the estimated asset value. | Trust in Management: You are trusting Lebashe/AttBid to manage the asset sales in a way that benefits minority shareholders. |
Recommendation for a “Small” Shareholder
Check the JSE: Look at the current share price on your banking app or a news site. If the shares are trading at, say, R0.50 on the open market, it is better to sell them there than to accept AttBid’s lower offer of R0.47.
Review the Circular: Look for the “Independent Expert’s Opinion” in the formal offer document. Usually, if the offer is significantly below NAV, the expert will label the offer as “Fair but not Reasonable” (meaning it matches the market price but is much lower than the actual value).
The “Patient” Play: If you don’t need the money urgently, “Doing Nothing” allows you to wait for the company to sell its stake in Atterbury Property and other assets. Historically, RMH has been committed to returning all spare cash to shareholders.
Summary: AttBid is offering a “discounted exit.” If you believe in the value of South African property and have the patience to wait for the wind-down process to conclude, holding your shares is likely to yield a higher total return over the long term than accepting the R0.47 today.
Emerald Goddess
Vusi Thembekwayo – CEO of Motiv8, and Founder of The Inspiration Project, My Growth Fund and Iconoclast: At 25, Vusi Thembekwayo served on the operations board of Metcash Africa. He was tasked with launching a new division, which he built into a R461 million turnover business. He then left to launch his own business in 2013, Motiv8 his own consulting business, which he bootstrapped with speaking engagements. \”In my experience, the only way to succeed is to invest time in your own development and have \”skin in the game.\’ Time enables you to build technical ability and establishes your credibility in the market,\” says Thembekwayo. He went on to become one of the \”dragons\’ on the South African edition of Dragons\’ Den, where he was responsible for allocation over R10 million worth of investment, as well as one of the \”sharks\’ on M-Net\’s Shark Tank. In 2011, he co-founded Watermark Capital Partners, a private equity firm. In 2013, he was appointed non-executive director at RBA Holdings Ltd. In 2014, he founded The Inspiration Project, a tech enabled narrative lab reshaping the story of Africa, qualified to join the National Speakers Association of New York, and founded My Growth Fund, a fund to support business people as they start, build and grow their businesses. In 2015, he founded Iconoclast, a boutique specialist public speaker representation management agency.