DataPro share price up and down on market speculation
DataPro shares closed on R2-54 yesterday, down from its R3-55 high just a few days ago. Despite the price drop over the last few days DataPro remains one of the strongest performers on the JSE with a 1 year growth of around 400 %.
DataPro CEO Douglas Reed told MyBroadband that there was no concrete reason behind the sudden rise and fall of the share price over the last two weeks other than market speculation about a possible acquisition of DataPro.
DataPro not up for sale
Reed said that while the company is in discussion with various players about a possible acquisition and/or partnership, it is certainly not 'up for sale' so to speak.
Reed said that DataPro does not need any money and that the DataPro management team has the freedom to evaluate its options carefully and only consider a deal if it benefits the company, its customers and its shareholders.
Reed did however say that anything which is tabled that can benefit the company, including an acquisition which will give a buyer management control, will be considered.
The DataPro CEO said that the current management team is not ‘hung up on control’, and that he envisages many partnerships, acquisitions and consolidations in the telecoms space in the short and medium term.
DataPro also spreading its wings
While many people may only currently look at a possible acquisition from a company like Vodacom, DataPro itself is looking to make various new acquisitions.
Reed said that the company is currently evaluating various possible acquisitions, but that it is not easy finding good buys for the right price. DataPro recently acquired Orion Telecom and the ISP Xsinet through @lantic.
Jacques Visser, Channel Director at @lantic, said the company – which is wholly owned by DataPro – is "on a major acquisition drive" and that Xsinet is the first of many acquisitions that they will be looking at.
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