Johannesburg, 30 May 2002
JSE-listed IT distributor Mustek continues to consolidate its operations as it gears up to list some of its shares on the Taiwanese Stock Exchange later this year.
The company confirmed today that it is planning to deposit depositor receipts with custodial banks, allowing the Taiwanese community to trade Mustek shares in the local currency.
Mustek bought out minority shareholders of components distributor and subsidiary Rectron earlier this year and will de-list the company from the Johannesburg bourse. Mustek offered Rectron shareholders 80c per share, equating to a 33% premium on the trading share price, at the time of the offer.
In terms of Taiwanese Stock Exchange requirements, listed companies should have a strong net asset value, and it is hoped the combined strength of the Rectron/Mustek entity will give the new listing a strong standing on the bourse.
Moreover, it is believed that the consolidated company will be more attractive to traders in the Asian region. Local distributors say Asian markets have a strong affinity to distribution companies, which enjoy more credibility both from the investment public and financial institutions than their South African counterparts.
The timing of the Taiwanese listing will depend largely on the go-ahead from Mustek shareholders as well as market conditions.
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