Johannesburg, 08 Jul 2008
JSE-listed Jasco Electronics Holdings' R214.1 million acquisition of a 34% stake in Malesela Taihan Electric Cable (M-Tec) has become unconditional.
Jasco first issued a cautionary notice relating to the deal in November last year, and announced the acquisition in April.
The group says in a statement to shareholders that all conditions precedent have now been finalised, as the 27.4 million Jasco shares - in part payment for the acquisition - were listed by the JSE this week.
The related special resolution relating to the increase in Jasco's authorised share capital to 15 million ordinary shares was registered by the Companies and Intellectual Property Registration Office last month.
M-Tec, a manufacturer and supplier of various cable products, recently commissioned a fibre optic plant and a copper telecommunications plant. The company achieved net turnover of R1.04 billion and after-tax profit of R71 million for the year to 30 June 2007.
With the implementation of the deal, international cable business Taihan holds an effective 66% in M-Tec, with Jasco owning 34%.
Jasco has said the broadening of the product range in the electrical and electronics fields between M-Tec and Jasco's business will allow the group to strengthen its role as a value-adding supply partner, as well as position it to take further advantage of the burgeoning infrastructure spend in SA.
The Jasco share was trading unchanged at R2.30 this morning, having also moved sideways yesterday.
Share