Johncom makes R93m from MTN

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Johnnic Communications (Johncom) says it has realised R93 million from the disposal of the bulk of its shares in the MTN Group.

The company says it has sold about 60% of its remaining shares in MTN on the open market since April last year, making R210 million from the transactions. Its average sale price was R13.60, a significant premium to the current share price of R11.60.

Johncom says the proceeds will be used to reduce its debt.

Its remaining 11 million shares in MTN have been partially pledged as security for other debt obligations and are partly being held to satisfy obligations under its employee share scheme.

The sale is part of a Johncom restructuring which saw it distribute 34% of its holding, in what was then M-Cell Limited, to shareholders.

Parent company Johnnic Holdings earlier this month said it had given up the search for a buyer for Johncom after being advised that a deal would not be feasible. Connie Molusi was subsequently appointed CEO of the company and tasked with "tightly integrating" its various divisions.

In announcing the figures, the company also said results for the second half of 2003 were still expected to be in line with forecasts, "despite the influence of a stronger rand on the results from offshore operations".

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