Radiospoor will increase its holding in Control Instruments (CI) subsidiary, Matrix, to 95% for R18 million.
Radiospoor announced on 17 July that it would increase its stake in CI`s GSM division, Matrix, by 47.5%. Details of the acquisition show the deal going through for a cash consideration of almost R12 million and repayment of Matrix`s loan account for R6.5 million.
Richard Friedman, CI MD, points out that if the Matrix deal had been effective for the 12 months from 1 January 1999 to 31 December 1999, then CI`s earnings would have increased almost 7% to 15.9c a share and its net asset value by 21% to R1.03 a share.
Similarly, Radiospoor says its figures to 31 December 1999 would have reflected a loss per share of 2.8c, rather than the reported loss of 4.2c.
Friedman says the original plan of spinning off Matrix into an independently listed company was thwarted by market conditions.
Radiospoor intends to broaden Matrix`s business strategy into the value-added service associated with the GSM industry.
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