Dawn signs nonbiding MoU for potential disposal of shares
JSE-listed branded hardware, sanitary ware and civil products manufacturer Distribution and Warehousing Network (Dawn) has signed a nonbinding memorandum of understanding (MoU) with the controlling shareholders of GroheDawn Watertech (GDW) for the potential disposal of Dawn’s 49% shareholding to GDW.
If this deal is concluded, it may have a material effect on the price of Dawn’s securities, the company advised on Tuesday, adding that no price had been agreed on as yet. Dawn further noted, however, that there was no certainty that the negotiations would lead to definitive and binding agreements and, therefore, no certainty that the transaction would ultimately be concluded and implemented.
“The intention of both parties is that Dawn remains the long-term master distributor for the GDW product range in Southern Africa. It is the view of the Dawn board that this transaction would be a positive step in the turnaround process of the group,” stated Dawn.
Shareholders were advised to exercise caution in their dealings in Dawn shares until a further announcement is made.