The four IT acquisitions made by Vestor Investments during the past four months will increase earnings by over 3 000%, says the JSE-listed company, which is under new management control.
In February, the company notified shareholders that a change in control had been orchestrated through Trinity Asset Management acting as a nominee for Adage Technical Fund SA. This change was effected through an initial sale of 43 million shares, for 6.5c each.
Adage is a holding company with various interests in the UK and SA. In a notice to Vestor shareholders, it said it had been created to pursue opportunities predominantly in the IT, telecommunications and related services sectors. Geographically, it focuses on the UK, Africa and Middle East regions.
Vestor is now under the management of acting chairman Sindile Peteni. Peteni has been a contract manager with the Urban Foundation, technical services manager with Uluntu Utility Company and managing director of Khagula Property Developers.
He is supported on the board by Gordon Edwards, who played a role in the founding and listing team of Datatec in 1994; Pieter Bouwer of the old AST Group; Norman Macdonald, who formed part of the MTN start-up team in 1993; chartered accountant Martin Deon van Rooyen, who has associations with various unnamed black empowerment groups; and Sandile Swana, a non-executive director of JSE-listed Aflease Gold and Matodzi Resources.
On the hunt
In April, Vestor announced its first acquisition, with the purchase of ConvergeNet SA for a consideration of R9.1 million.
The acquisition was as a result of ConvergeNet's product relationships and key individuals within the organisation, who collectively had the "requisite experience, credentials and relationship capital" to deliver on the group's strategy. Following Vestor's acquisitions, ConvergeNet will form part of the group's product distribution business.
Two days later, Vestor revealed it had acquired 51% of Structured Connectivity Solutions (SCS) for R11.2 million.
With its infrastructure and competencies in project management and solution delivery, SCS is expected to form part of Vestor's turnkey project business.
A month later, Vestor announced its acquisition of a 51% shareholding in Sizwe Africa IT Group for a maximum consideration of R67 million.
The company was acquired for its access to clients and markets, specialised skills and capabilities, and ability to provide countrywide ICT service and support in SA, said Vestor.
This week, Vestor acquired 74% of the issued share capital of Telesto Communications for R22 million.
"The acquisition of Telesto is in line with [our] strategy to acquire appropriate vehicles through which to achieve our vision of positioning the group as a significant ICT industry player," explained Vestor.
Following the announcement of the Telesto Communications acquisition, Vestor withdrew its trading caution to investors.
The pro forma financial effects of the acquisitions should see earnings per share (EPS) and headline EPS move from a loss of 0.05c per share, to a gain of 1.35c, a 3 008% move upwards.
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