Johnnies Industrial Corporation (Johnnic) says it has disposed of 2 003 334 shares in Nasdaq-listed MIH Limited for a total consideration of $146.9 million. The cash will be used to expand its subsidiaries, especially MTN.
"The disposal gives Johnnic access to foreign cash which is critical for funding the offshore expansion in certain of our subsidiary companies, notably MTN, and places us in a strong position to exploit foreign opportunities in our businesses," says Johnnic CEO Paul Edwards.
"We continue to focus on our core assets and the disposal is a further step towards Johnnic`s complete transformation into an integrated telecommunications, media and entertainment group."
Johnnic, through M-Cell, increased its holding stake in MTN by 4.9% in early April, taking its total holding in the cellular provider to 77%. The deal is to be settled with the issuing of 77.5 million new ordinary M-Cell shares.
There has been speculation that Johnnic and MTN, together with Transtel, will bid for the secondary fixed-line licence once Telkom`s exclusivity period expires.
Johnnic shareholders have also passed a resolution to have Johnnies Industrial Corporation`s name changed to Johnnic Holdings. At a general meeting, shareholders decided on the adoption of new memorandum and articles of association, and agreed that the company or a subsidiary be enabled to buy-back shares.
(With additional research by ITWeb.)
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