International investment group Active Value has taken control of JSE-listed Dectronic, and intends to use the listed vehicle to pursue its strategy of actively seeking out and purchasing undervalued companies.
Dectronic listed on the venture capital sector of the JSE in 1998, investing in small and medium enterprises in the IT industry. The company experienced hard times and was rescued late last year by the Gandulf Trust. The rescue operation saw Gandulf Trust take a 43% interest in Dectronic, and assume ultimate control of the company after it installed its own management team.
The proposed deal will see UK-based Active Value Management (AVSAM) assume majority interest and control of the listed company after Dectronic issues 275 million ordinary shares to Active Value, worth R2.75 million.
Dectronic will change its name to AVASA and the new board will include AVSAM nominees Brian Myerson and Julian Treger.
Karl Gribnitz and Jan Nel, both of Gandulf Trust, will remain on the board at AVASA, and a new operating officer and an investment professional will be hired.
AVASA will actively seek out and acquire undervalued companies in the local market. The new entity`s management says the company will consider acquiring operations in both the private and public sectors.
Once acquired, AVASA will embark on turnaround strategies to extract value from the companies.
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