Cautionary sends Astrapak shares soaring
Astrapak’s shares shot up on Friday after the company announced that it had entered into negotiations which could have a bearing on the company’s share price.
|||Johannesburg - Plastic packaging company Astrapak’s shares shot up on Friday after the company announced that it had entered into negotiations which could have a bearing on the company’s share price.
The company’s share price rose by as much as 10.14 percent to close at R3.80, which valued the group at R513.5 million.
Rand Swiss investment analyst Gary Booysen said a cautionary announcement by a listed company was not a cause for concern for shareholders as it was a regulatory requirement by the JSE when a company was about to enter into a deal which would affect its shares.
Booysen predicted that the company would probably either buy from or sell to other packaging companies. Whether such changes had good or bad implications depended on the terms of negotiations, he added.
Astrapak remained mum on the nature of these negotiations, declining to give further details and estimates on when the negotiations would be concluded.
Astrapak is a South African manufacturer and distributor of a wide range of rigid and flexible plastic packaging products.
BUSINESS REPORT