State-owned asset management firm the Public Investment Corporation (PIC), which is a 21.97% shareholder in industrial equipment and services company Barloworld, has confirmed that it voted against the proposed takeover of the company at a price of R123.10 a share.

The PIC also exercised its right to vote against board members that were up for re-election at the company’s AGM on February 21.

The PIC’s mandate is to generate value and financial returns for its clients, while ensuring positive socioeconomic outcomes.

The PIC believes the current offer for Barloworld represents a premium to the company’s fair value and a premium to the pre-price offer. This is within the valuation range as recommended by the independent valuer Rothschild.

The PIC remains open to engaging all stakeholders to amicably resolve the concerns expressed to the board of Barloworld, it said in a statement.

“The PIC does not, in the ordinary course of business, comment on specific transactions. Given considerable media attention on the proposed transaction and the gravity of the issues outlined below, the PIC believes a public statement is justified,” the State-owned enterprise said.

The PIC understands the strategic direction that OEM Caterpillar has taken to increasingly place the running of their dealerships into private hands.

However, the PIC is concerned with corporate governance standards at Barloworld and the steps its board followed in considering the transaction in question.

These concerns have been expressed to the board over a series of robust engagements. The PIC will continue to engage the board accordingly, it added.

The PIC expects the boards of its investee companies to act in the best interests of the companies and stakeholders.

The PIC supports the empowerment of previously disadvantaged groups in South Africa. The PIC prefers transactions that are inclusive and broad-based. The benefit of empowerment or any transactions should cover a wide range of stakeholders, it said.

Shareholders were, on February 26, given the opportunity to vote on the proposed buyout of Barloworld by a consortium that includes the company’s management and Saudi Arabian group Zahid. Less than 37% of shareholders voted in favour of the transaction.