JSE-listed Jasco, which holds interests in telecommunications and electronics businesses, has made a firm cash and shares takeover offer for fellow JSE-listed information and communication technology (ICT) company Spescom.

Jasco noted in a statement to shareholders that the combination of the two companies into one group, which would have a turnover in excess of R1-billion, would create an integrated business that could effectively participate in the growing converged communications environment.

Spescom shareholders have been offered one ordinary Jasco share for every 2,47 Spescom shares held, as well as 15c a share in cash for each share held.

The cash consideration would amount to a total of R11,8-million, with a total of 31,9-million Jasco shares to be issued.

The two parties expected the merger to provide the combined group with a number of operational and financial synergies, saying that the diversified income streams from Jasco’s telecommunications business and Spescom’s ICT businesses would reduce the business risk of the overall group.

The businesses would be complementary and would enhance cross-selling opportunities for different product ranges.

Further, it was anticipated that a number of divisions across the group would be able to combine their efforts to create integrated product offerings.

Spescom’s footprint in East Africa and Jasco’s presence in West Africa could be leveraged to grow the group’s African revenues, said Jasco.

If the deal goes ahead, Jasco CEO Martin Lotz would become CEO of the enlarged group, with Jasco CFO Warren Prinsloo to be group CFO.