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Jasco to sell underperforming M-Tec for R60m

Jasco to sell underperforming M-Tec for R60m

Photo by Bloomberg

17th July 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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Communication solutions provider Jasco’s subsidiary Jasco Cables Investments will sell its 51.1% shareholding in Malesela Taihan Electric Cable (M-Tec) to Malesela Holdings for R60-million.

Jasco’s decision to sell its stake in nonferrous products manufacturer and supplier M-Tec, followed its sustained poor performance since 2013 and was in line with the company’s continued focus on addressing underperforming business units and exiting from noncore and low-value-adding businesses.

The company would use the proceeds to strengthen its balance sheet, reduce its interest cost and free up significant executive management time to focus on its core operations.

The purchase consideration would be settled through an initial payment of R20-million, followed by monthly payments of interest accrued, paid from January 1, 2016, to June 30, 2016.

Meanwhile, R40-million would be repaid in monthly installments of capital and interest starting on July 1, 2016, and ending on December 31, 2018.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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