The JSE looks set to lose yet another technology listing. The major shareholder in technology group Jasco Holdings has firmed up plans to buy out minority investors and take the business private.

This offer tabled by Community Investment Holdings (CIH) is 16c/share in cash.

In line with takeover regulations, Jasco has now appointed an independent board to assess the reasonableness of CIH’s offer to shareholders. That assessment will be done in due course.

The offer amounts to some R24.9-million in cash. CIH and associated entities currently hold 55.4% of Jasco.

“Jasco’s shares trade in small volumes with minimal liquidity and no premium to its peers. In this context, the Jasco board has resolved that the company can no longer justify the costs and associated administrative burden of a JSE listing when considered relative to the benefit of an ongoing listing,” it said.

“From a shareholder perspective, the costs associated with Jasco being listed outweigh the benefit of being able to publicly trade in Jasco shares. The delisting will also enable management to dedicate more time and resources to the company’s business operations without having to dedicate considerable time, expenses and resources to the regulatory processes associated with being a listed entity.”

‘Value’

It said CIH believes the proposed deal offers value to other shareholders given that Jasco shares are thinly traded and the offer represents a 14% premium to the data preceding the announcement of CIH’s plans, published on 5 December. The offer is also a 4% premium to the 30-day volume-weighted average price on the data preceding the first announcement.

“As at the date of this announcement, the Jasco board has not received any other firm intention letter, other than the offer from [CIH],” Jasco said.