WHILE SOME ANALYSTS breathed a sigh of relief when the proposed merger between AltX-listed Simeka and computer company Sahara was called off, they've welcomed its latest corporate action – the proposed buying of fellow AltX listing SAB-T Ubuntu (SUHL).<\/p>\n
A consulting and professional services company, SUHL listed just shy of 18 months ago but was relatively illiquid. So it seems to make sense for its shareholders to take shares in the enlarged group, which trades more freely and will have greater clout.<\/p>\n
Though the small cap sector isn't well covered, I've seen at least two reports maintaining a "buy" recommendation of Simeka shares in the wake of the deal.<\/p>\n
Kaplan Equity Analysts MD Irnest Kaplan says he bought into the rationale given by both companies.<\/p>\n
SUHL does well in the public sector and it's also well staffed, with a number of skilled professionals.<\/p>\n
Its management is taking shares and agreed to be locked in from trading and took on restraint of trade restrictions.<\/p>\n
Kaplan says that demonstrates they're in for the long haul.<\/p>\n
For Simeka, the deal will strengthen its consulting division in particular and enhance its State sector presence.<\/p>\n
Kaplan says Simeka is still a buy in terms of his earnings forecasts.<\/p>\n
And he doesn't seem to mind it is paying in shares, not cash, as it is more a case of attracting and retaining SUHL's people and clients.<\/p>\n
"For us as minority Simeka investors, it's a case of having a smaller share of a bigger pie." <\/p>\n
Finweek<\/em><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" SOME ANALYSTS breathed a sigh of relief when the proposed merger between AltX-listed Simeka and computer company Sahara was called off<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-3670","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/3670"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=3670"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/3670\/revisions"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=3670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=3670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=3670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}