An independent board formed by eXtract Group Ltd. threw its support behind Inhlanhla Trust Investments (Pty) Ltd.'s bid to acquire eXtract shares from shareholders who do not wish to hold shares in an unlisted structure.

Inhlanhla, a 20.25% shareholder of eXtract, is offering to buy the shares for 6 South African rand apiece.

According to a Dec. 20 release, the decision was made following a recommendation from board-appointed expert Mazars Corporate Finance (Pty) Ltd., which described the offer as fair and reasonable to eXtract shareholders.

eXtract is required by the JSE to find a fair cash offer to secure approval for its proposed delisting, which will be voted by eXtract shareholders in a general meeting slated Jan. 21, 2019.

A number of shareholders who hold a combined 30.30% stake, namely Samvenice Trading (Pty) Ltd., Sweet Valley Enterprises Corp. Ltd., Ellerine Group (Pty) Ltd. and Prodiam Trading CC, have expressed support for the delisting but not for the offer.