Jasco said it is in discussions with Taihan Electric Wire, from Korea, the other shareholder in the M-TEC unit, about a process for its disinvestment from the business.
If the deal is successfully concluded, it could have a material affect on Jasco's shares, it said in an announcement to shareholders.
In its results for the six months to December, it said its investment in M-TEC, or Malesela Taihan Electric Cable, was "under review".
In the first half of the year, M-TEC weighed on results and dragged headline earnings per share down, as the contribution from the unit was 84% lower.
"The share of income from the group's associate, M-TEC, was substantially lower than the comparative period due to project delays from a major customer, which particularly impacted the aluminium conductor business," it said in February. Jasco's 51% share of profit was down 84%, from R4.9 million to R800 000.
It said in 2008 it would buy an effective 34% economic interest in M-TEC for a maximum amount of R99.1 million.
Jasco is in the second year of its three-year turnaround strategy, implemented after it bought Spescom.
The company has been restructured into three verticals: Information and Communication Technology (ICT) Solutions, Industry Solutions and Energy Solutions. Previously, the group had four units.
ICT Solutions contains the telecommunications and IT businesses of Jasco, Spescom, the newly-acquired ARC Telecoms, as well as the telecommunications arm of associate M-TEC. Industry Solutions contains the security business and recently-acquired FerroTech, with Energy Solutions containing Electrical Manufacturers and Lighting Structures.
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