Jasco hits hiccup in M-TEC disposal
Jasco announced on Friday (20 December) that discussions to disinvest its interest in M-TEC have been delayed due to unexpected executive management changes at Taihan Electric Wire.
“Accordingly, shareholders are advised that caution is no longer required to be exercised by shareholders when dealing in the Company´s securities…shareholders will be advised as the position develops,” Jasco said.
In August, Jasco noted that it was in talks with Korean shareholder, Taihan Electric Wire Company, over the sale of its 51% share in M-TEC.
In September, Jasco reported a loss for the year ended June 2013, as the company saw itself in the midst of a three-year restructuring plan.
The restructuring plan included the exit from M-TEC, which has continued to drag on the IT player’s profitability.
Despite breaching the R1 billion revenue mark in 2013, Jasco reported a pre-tax loss of R93.5 million for the year ended June 2013.
“The group has made good progress, with the current year’s focus being on corrective action. This resulted in decisive action in the under-performing areas of the business, which impacted the results,” it said at the time.
The corrective action taken resulted in the strategic exit from certain manufacturing businesses.
More news on Jasco
Jasco swings to full-year loss
Loading ...