A fairness opinion is a report prepared by a JSE approved independent expert expressing an opinion on whether a transaction is fair/unfair to shareholders. This report is usually included in a circular issued to shareholders to assist shareholders in deciding whether or not to approve a transaction.

The following transactions are examples of where a fairness opinion would be required:

  • Related party transactions;
  • Where shares, options or convertible securities are issued to a related party at a discount;
  • Where shares are purchased from a related party at a premium; and
  • Delisting from the JSE.

The Merchantec Capital valuations team has been approved as an independent professional expert by the JSE for valuations in all industries including specialised sectors as property, mining and insurance.

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