Conlog is set to make a debut on the Telecomms sector of the JSE, changing its name to Dynamic Telecomms. It has also offered to buy back 40% of the issued share capital at 40c per share.
The operating business of Conlog was acquired by French group Schneider Electronics and Merlin Gerin effective in July, at which point Conlog reverted to the Cash Companies sector of the JSE.
The consideration price for the acquisition was R88 million and entailed a R50 million cash payment, which has been received.
The parties involved have agreed to accelerate the remainder of the payment, with Conlog receiving a further R25.2 million as full settlement.
Directors of Conlog view this as fair, considering the reduction of the net asset value of Conlog in the intervening months.
Conlog announced its intention to become an active participant in the telecommunications sector, and purchased Dynamic Cables from the Cape Empowerment Trust for R16 million this month.
Conlog says it will now change its name to Dynamic Telecomms and switch sectors to the Telecommunications Sector of the JSE.
It has also announced it will offer shareholders 40c per Conlog share in a buy-back scheme.
This is subject to shareholder approval, to be decided at a general meeting to be held on 6 February next year.
In terms of the arrangement, shareholders can submit as many shares for repurchase as they like, but if the overall shares available exceed 40% of the issued share capital, it will be necessary to enforce a pro-rata purchase scheme.
Conlog hopes to cash in on what it perceives to be a lucrative telecommunications industry, and is confident it will be a profitable avenue.
Conlog share price was trading 1c up on its opening at 31c by 11am today.
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