A dispute challenging JSE-listed Jasco Electronics' majority ownership of Reflex Solutions by the latter’s minority shareholders has been concluded, with an arbitrator having ruled in favour of Jasco.
The arbitrator ruled that the cancellation by the minority shareholders of the sale of shares and shareholders' agreement was invalid and that the agreements entered into between Jasco, the minority shareholders and Reflex Solutions in 2017, as well as Jasco’s majority interest in Reflex Solutions, remain in full force and effect.
Jasco acquired a 51% share in the Johannesburg-based information technology managed services group for R39.8-million in November 2017.
Jasco warned shareholders in its 2018 annual financial statements, published in November 2018, that the minority shareholders of Reflex Solutions had initiated a legal dispute with Jasco regarding the majority ownership of the company.
By February, the dispute was headed for arbitration, with the arbitration process concluded on July 17.
Either party has until July 31 to appeal the arbitration award.