JSE-listed Jasco has become a black-controlled entity after issuing shares to acquire Tasslelane Investments in a R31 million deal.
Electronics and telecommunications group Jasco has been involved in talks for some time. It issued its first related cautionary notice in September last year.
The company reached an agreement with Tasslelane parent CIH to buy the company, which holds the exclusive distribution rights for 3M telecommunications products in SA and has secured long-term supply agreements with Telkom SA.
CIH is a black-owned and controlled investment group with holdings in healthcare, logistics, power and energy, telecommunications and the Malesela Group.
Jasco is issuing shares to acquire Tasslelane, which will result in a change of control. It says ordinary shares issued to CIH will equate to 30% of Jasco`s enlarged ordinary share capital.
However, redeemable preference shares will, subject to certain minority protections, increase the voting rights of CIH to 51% of the enlarged total share capital.
While Jasco management will remain unchanged, Anna Mokgokiong, Joe Madungandaba and Sakhile Masuku will join the board.
"The deliberate objective to introduce an empowerment model into Jasco represents another step in the empowerment and turnaround strategy Jasco set out to achieve three years ago," the company says.
"The restructuring programme has strengthened Jasco`s position in the southern African telecommunications sector."
It says the empowerment deal will strengthen its position through improved compliance with procurement criteria and thus reinforce its long-term growth plan.
"The acquisition of Tasslelane not only introduces a valuable empowerment equity partner into Jasco, but also Tasslelane`s strategic 3M Telecommunications products which are highly regarded in the telecommunications industry.
"Jasco will have a right of first refusal to participate in any new telecommunications business opportunities offered to CIH."
One of the conditions precedent is the waiver by Jasco shareholders of a mandatory offer of 145.33c per Jasco share, the price at which the ordinary shares are being issued to CIH.
The share was untraded at 160c this morning.
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