Cheers AltX, howzit main board for Enaleni

Posted AtMoneyweb.co.za

AltX-listed Enaleni has outgrown the junior bourse and is to list on the JSE tomorrow.

This comes as the company's R1,2bn acquisition of Cipla Medpro, the SA subsidiary of Indian generic drug maker Cipla, was given the go-ahead by Enaleni shareholders at the company's general meeting yesterday.

Part of the purchase of Medpro will be paid through the issue of 39,3m new Enaleni shares at 280c each worth R110m.

The company successfully raised another R990m through a combination of debt and equity funding in mid-November.

The JSE has approved the issue of an extra 284 465 768 shares to be listed today. Enaleni CEO Trevor Edwards was in a meeting when Moneyweb called, and was thus unable to answer questions.

The JSE's rules require companies to have three years of profit history before they can qualify to list on the main board. According to the Enaleni website, the company was formed on January 2, 2003, making it less than three years' old.

However, JSE listings head John Burke says that the combined profit history of Enaleni and Cipla Medpro make it eligible for listing on the main board.

"Also," says Burke," a company can opt to stay on the AltX, but if it wants to move it has to comply with all the JSE's rules."

These include a minimum pre-tax profit of R8m (for AltX, there is no minimum), a shareholder spread of 20% (AltX: 10%), and a minimum of 500 shareholders (AltX: 100).

Moreover, JSE companies have to pay an annual listing fee of 0,04% of its market cap, with a minimum of R26 334 and maximum of R121 700. On the AltX, the amount is R20 000.

AltX directors are also required to attend a directors' induction programme, whereas this is not necessary for JSE companies.

Enaleni shares shed 8,1% by the close of business, ending the day at R3,31.

December 14, 2005