Spescom will be deleted from the FTSE/JSE Africa Index next Monday, after being bought out by electronics firm Jasco.
The JSE this morning told shareholders that Spescom would no longer be included in the index from next Monday. Jasco will remain listed in the FTSE/JSE Africa Index, a collaboration between the London-based FTSE Index and the JSE.
Spescom's removal from the index follows the completion of a deal between it and Jasco to merge. Jasco said in September last year that it would buy out Spescom to create a R1 billion merged entity in the converged telecommunications space.
Jasco said it would settle the deal through a cash payment of R11.8 million, and the issue of 31.9 million new shares in return for Spescom.
In December, Jasco said all the conditions that needed to be fulfilled for the merger to go ahead had been wrapped up. Trade in Spescom shares on the JSE will be suspended on Monday, and its listing terminated on 25 February.
Jasco turned over R559.3 million in the year to June and reported net profit of R24.8 million. Spescom reported revenue of R362.7 million in its latest reported figures for the financial year to September 2009. Net profit was R8.7 million.
At the time of the announcement of the deal, Jasco CEO Martin Lotz explained the main driver for the deal is the huge potential the companies see in the telecoms sector in Africa, because more broadband is becoming available as undersea cables land.
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