South African electronics group Jasco Electronics Holdings (Jasco, JSC) said on Wednesday that its security division has been awarded three new Transnet security contracts to the value of R27 million. This brings the current Transnet security contracts signed since October last year to R60 million.<\/p>\n
The group also confirmed that all conditions precedent to the M-TEC transaction have now been finalised, confirming Jasco’s ownership of 51% of the ordinary and 51% of the preference shares in M-TEC.<\/p>\n
"We are extremely pleased with these contracts, as this indicates that our turnaround in Security is giving us traction in terms of securing new business. <\/p>\n
We also try to build strong relationships with our clients and value repeat business, such as in this case," said Jasco Security division CEO, Mel Davies. <\/p>\n
Security showed a strong improvement in the year to February 2008 results following its restructuring. It contributed 18% to revenue from operating divisions and 13% to operating profit.<\/p>\n
"Four years ago, we committed to a core strategy of growing acquisitively and organically and of ensuring a diversified group within strong growth areas. <\/p>\n
All our businesses are now performing. Over the last three years, we have delivered consistent growth, with a 27% compounded annual increase in revenue and a 44% compounded annual increase in earnings per share.<\/p>\n
Earlier this year, our focus on acquisitions was also successful, with Jasco announcing a major transaction with AfroCentric. <\/p>\n
This transformed Jasco from a black-controlled to a black-owned company," added Martin Lotz, Jasco Group CEO. <\/p>\n
In terms of the transaction Jasco acquired 51% of the ordinary and 51% of the preference shares in South African cable group, M-TEC, from Jasco’s current BEE shareholder, CIH, for R214.1 million.<\/p>\n
BEE investment group AfroCentric acquired a 34.9% stake in Jasco from CIH and CIH acquired a 34% share in AfroCentric through an exchange of shares.<\/p>\n
The remaining 49% of the ordinary and preference shares in M-TEC are owned by Taihan Electric Wire Company, a company registered in South Korea. <\/p>\n
Taihan is a major international company, using the latest technology in manufacturing its cable products.<\/p>\n
M-TEC is a pioneer in the manufacturing of non-ferrous products in South Africa with annual net turnover of over one billion rand and net assets of almost R240 million.<\/p>\n
The group manufactures and supplies power cable, fibre optic cable, aluminium overhead conductors, bare copper wire, strip products and non-ferrous products.<\/p>\n
"This transaction transforms us into a larger and a black-owned entity, ready to take up the new opportunities these partners bring to the table. <\/p>\n
"We are excited about the group’s future in all our businesses and with our established management team, we are confident that earnings per share will continue to grow," concluded Lotz.<\/p>\n
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