CET moves focus from restructuring to growth

Cape Empowerment Trust (CET) says its efforts will now move from restructuring to growing the business units under its control.

Cape Empowerment Trust`s philosophy is to buy companies with good growth prospects, add value and then exit to the benefit of shareholders.

"Notwithstanding the much publicised Intella transaction, our successes include Federal Guarding, the reverse listing of Dynamic Cables SA, and arising from the transformation process under way in the media sector, we are well placed to benefit as a result of our relationship with B&H Printhouse, as well as our investment in DDB SA," says group CE Shaun Rai.

The reverse listing of Dynamic Cables was concluded during the 10 months to 31 December. Dynamic Cables is a telecommunications company operating in the cable, enclosure and switchboard arenas.

Its share trading on the JSE was suspended recently after management discovered potential irregularities in the issuing of shares in 1997, 1998 and 1999.

"The Dynamic Cables management are currently making good progress in establishing the true facts behind these possible irregularities and will soon be in a position to determine whether it is necessary to apply to court to rectify its share register," Rai says.

"Fortunately this has not had a detrimental impact on the trading position of the company, which remains positive."

Dynamic said recently that it might have to cancel up to 28 million of its shares.

Rai says every effort has been made to reduce CET`s debt levels and its short-term goal is to reduce or eliminate the bank overdraft.

"Shareholders may now expect the group`s efforts to move from restructuring to growing the business units under our control," he adds.