South African company run by the same family for three generations set to delist from the JSE

Brikor has announced plans to buy out its shareholders and delist from the Johannesburg Stock Exchange after nearly two decades on the bourse.

Brikor is a South African manufacturer and supplier of building and construction materials used across residential, commercial, industrial, civil engineering, and infrastructure projects.

It operates through two segments, Bricks and Coal, and is based in Nigel, Gauteng.

The company was formed in August 1994, when Garnett Parkin I and his son, Garnett Parkin II, built a brick factory. At that point, the company was called Marievale Brickworks and produced 15 million bricks per annum.

That same year, the father and son formed a second company, PME, which acquired a fleet of two trucks and three trailers.

PME was responsible for farming operations, the transportation of clay and coal, and the distribution of bricks.

Unfortunately, Garnett Parkin I passed away two years later, leaving the business to his son, who acquired the entire share capital of both companies.

In 1998, Parkin II acquired Basfour, which he incorporated as a private company along with some factory land in Nigel. Thus, a second brick plant with a production capacity of 14 million bricks per annum was commissioned.

A year later, he formed Marievale Bamford, which would later purchase land and plant in Olifantsfontein.

There, the group’s third brick plant, which included a gas-firing tunnel kiln with a production capacity of 16.7 million bricks per annum, was commissioned.

In 2000, PME acquired further land in Rayton to supply clay to the brick plant in Olifantsfontein.

One year later, Basfour officially changed its name to Brikor, and all of the group’s brick manufacturing and sales operations were consolidated under the one name.

By 2007, the group was booming, having become one of the largest brick makers in South Africa, and decided to list on the JSE.

However, a year later, the company experienced a dramatic strike action, which, coupled with the global financial crisis, led to a massive loss.

This forced Brikor to restructure as it was faced with a mounting pile of debt. This saw the company let go of a number of staff in an attempt to become financially stable again.

For the time being, this worked, and the company made a return to a more stable footing.

However, in 2013, Brikor had hit hard times again, as a dispute with FNB over its debt led to the company being placed under provisional liquidation.

Tragically, Parkin II would pass away in 2015, though his legacy was continued when his son, Garnett Parkin III, took over as CEO.

Parkin III managed to bring the company back from the brink of liquidation, with the company’s finances having improved and an agreement reached with FNB.

Parkin III remains CEO to this day and will now oversee the company’s delisting from the JSE.

Delisting

On Friday, 26 June, Brikor informed its shareholders that the board has proposed a deal whereby the company will buy out all of its remaining shareholders.

The company is offering shareholders 17 cents per Brikor share, with the company currently trading at around 15 cents per share at the time of writing.

Once the buyout is complete, Brikor plans to delist from the JSE and become a private company once again.

The group explained that its decision stems from Brikor’s illiquidity and current operating environment.

Brikor has been a very thinly traded stock on the JSE since about 2023, and had a market cap of R123.35 million at the time of writing.

The company’s share price is down 70% over the past five years, and down more than 90% from its 2021 peak of R1.54 per share.

Based on these factors, Brikor said its board believes that the company no longer warrants a listing on the JSE, as it can no longer justify the costs and administrative burden that comes with being a listed entity.

Thus, Brikor will make an offer to repurchase all of its remaining ordinary shares, around 116 million shares, for a cash offer consideration of 17 cents.

This offer will be for a total maximum consideration of R19.75 million, which will be funded from an irrevocable unconditional guarantee issued by Nedbank.

Brikor will attempt to conclude this transaction no later than Monday, 30 November 2026.