Related Articles
Top Stories
May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 25 2012 19:13
Uncertainty over the future of the euro zone returned to push the rand down against the dollar.
May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Johannesburg - Shares of telecommunications, electronics and security company Jasco - a 20 year veteran of the JSE - leapt by as much as 9% to 435c in intra-day trade on Monday after the company released a cautionary announcement on Monday morning.
The company has, for some time, been on the lookout for an enterprise-transforming acquisition that would catapult it to a significantly larger player. Jasco should turn over roughly R500m at the year-end (annualised, off the back of R253m in turnover at the half-year).
But, despite the best efforts of CEO Martin Lotz, it has not yet been able to find the right deal at the right price. In the meantime, Jasco has been growing organically, fixing problem areas (like the small security division), and making small, but strategic acquisitions along the way.
Although the cautionary could well relate to yet another smaller, but relatively significant purchase - given that it has put out the cautionary, it would have to be material - the market interpreted the announcement as something quite significant.
Jasco previously walked away from a significant deal because the "value-to-reward ratio" was deemed to have been unacceptable - in other words, the board saw it as just too expensive.
The deal would have added roughly R250m to Jasco's turnover line, from R350m at the time. Apart from giving it critical mass, the deal would also have enhanced black control and broadened the product and customer base, Jasco said at the time.
Fin24 sister publication, Finweek, has speculated previously that a potential deal could involve its existing black economic empowerment partners, Anna Mokgokong and Joe Madungandaba's company Community Investment Holdings, which has interests ranging from telecoms, to power & energy, healthcare, as well as transport & logistics.
- Fin24