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STUDY ABROAD OPTIONS
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 JSE HIT BY WAVE OF DELISTINGS The JSE is the largest capital market south of the Sahara but it has been hit by a wave of delistings, many of which are IT companies. Most recently Core Holdings has faced the problem of delivering is annual results on time or face suspension from the JSE. The article below from the Big Change Newsletter by Professor Leon Brummer looks at what’s been happening. One of the primary reasons for listing on the JSE Securities Exchange should be to gain access to capital. However, with the delisting of 181 companies since the beginning of 1999, it is very clear that there are still a significant number of companies which simply should not be listed.While 181 companies delisted from early 1999 to mid-July, 91 new listings took place. Last year, however, there were only 14 new listings, but 66 delistings took place. There is certainly a trend for less listings at this stage, pointing to a shake-up on the stock exchange and perhaps in the overall mindset of corporate SA. Only three companies have listed so far this year. This could partly be because of the slowdown of the economy and because of the fallout of the dotcom crash, but it also points to the fact that many of the companies who have listed over the past few years should never have listed in the first place. Under the current market conditions, it makes sense for only about 150 of the stock exchange’s top companies to make rights issues. The latest listing requirements are also more demanding. Section 4 of the JSE listing requirements states that any applicant seeking a listing on the main board must have a subscribed capital of at least R25 million, must have not less than R25 million in equity shares in issue, and must be able to provide a satisfactory audited profit history for the proceeding three financial years, the last of which must show a profit of at least R8 million. If a company does not meet these, and other, requirements, it can be relegated to the development capital market or venture capital market. But companies already listed are given three years to meet these requirements. Professor Leon Brummer is head of content development at McGregor BFA, the on-line financial services provider in the JSE Securities Exchange listed Naspers group. IQ BUYS 30% OF ADASTRA The IQ Business Group has acquired a 30% stake in Cape-based Adastra Technology Corporation. (source: http://www.itweb.co.za/sections/financial/2001/0108221145.asp) GETRONICS ACQUIRES CS HOLDINGS The local Getronics subsidiary has been acquired by CS Holdings for R43 million. Jason Norwood-Young reports. (source: http://www.itweb.co.za/sections/business/2001/0108211055.asp ) MUSTEK PLANS TO MOVE INTO AFRICAN MARKETS Mustek has adopted a strategy in terms of which it is planning to place the Mecer brand in each major African territory. (see also NamItech story in People and Jobs below) (source: http://www.itweb.co.za/sections/business/2001/0108141023.asp ) DIDATA SUBSIDIARY MAKES US$35m ACQUISITION Dimension Data’s 51%-held Asian subsidiary, Datacraft Asia, has bought Korean systems integration company Dasan Electronics for $35 million in cash. [14 August 2001] (source: http://www.itweb.co.za/sections/financial/2001/0108140910.asp )
Reaching the Agents of Change The Big Change is the e-mail newsletter of venture capital, deal-making, and business strategy in the convergent economy. Our team of experts provide regular insights into technology and business trends and strategies. For your convenience, The Big Change compiles a weekly digest of links to news, research, advice, case studies and dealflow trends from around the world. Subscribe at no cost by sending a blank e-mail to:
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This page last updated on January 28 2004.
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