Dynamic Cables might delist

By Iain Scott, ITWeb group consulting editor

Johannesburg, 31 Mar 2004

Dynamic Cables RSA, whose share has been suspended for more than two years, is in talks that could see it delist from the JSE.

The share was suspended at the request of the company`s directors in February 2002 after they became aware of possible irregularities involving shares issued from 1997 to 1999.

Settlements were reached with two vendors before the group released its interim results in September last year, and talks with other vendors are under way.

These talks have been dragging on. Acting chairman Shaun Rai said in September that the group expected to conclude the process and lift the share suspension before the December year-end.

Announcing the results for the year to December yesterday, Rai said again that the process was expected to be concluded before the year-end.

"However, the company is currently evaluating its position and its continued listing on the venture capital board of the JSE Securities Exchange SA and could consider delisting from the JSE Securities Exchange SA in the near future," he says. "Negotiations in this regard are taking place with the holding company."

Rai is the CEO of the holding company, Cape Empowerment Trust, which has a 53% stake in Dynamic Cables RSA.

Dynamic Cables recorded an attributable profit of R1.63 million for the year to December, compared with a previous loss of R20.35 million. Headline earnings rose to 3.4c a share from a loss of 8.8c a share. Turnover dipped from R99.6 million to R65.63 million.