The transformation of Conlog Holdings into a telecommunications company with a new name received another boost this morning with shareholders giving unanimous approval to various related resolutions.
Until its recent acquisition of Dynamic Cables RSA from Cape Empowerment Trust (CET), Conlog`s only assets were cash and receivables arising from the disposal of its businesses, carried out to eliminate debt.
Under new management and having received shareholder approval, the group will now focus on the telecommunications industry under its new name, Dynamic Cables SA, which takes effect on 5 March.
On the same day, its JSE listing will be transferred from cash companies to the development capital market.
CET`s MD and CE, Shaun Rai, who is a non-executive director at Conlog, says with the Dynamic Cables acquisition Conlog now has a "good, stable base from which to go forward".
He says although Conlog had its troubles in the past, it now has a good platform on which to build.
The group is also offering to buy back up to 40% of its shares at 40c each. The offer opened yesterday morning and ends at the close of business on 2 March. Conlog`s share has been trading at 36c in recent weeks.
According to the group, shareholders are not rushing to accept the offer.
"There is an apparent indication that shareholders are willing to stay," says executive director Allen Pheiffer. Some big money has already indicated a willingness to stay with the group, he adds.
Among other related resolutions, shareholders voted for an increase in the company`s authorised share capital from 66.8 million shares of 5c each to 300 million shares of 5c each; that the share re-purchase offer go ahead; and that the name be changed to Dynamic Cables.
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Conlog changes name, switches sectors
CET to sell Dynamic Cables to Conlog
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