JASCO ELECTRONICS HOLDINGS LIMITED - Update - Competition Commission ruling on the proposed acquisition of Cross Fire Management (Pty) Limited

Update - Competition Commission ruling on the proposed acquisition of Cross Fire Management (Pty) Limited

JASCO ELECTRONICS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1987/003293/06)
Share Code: JSC            ISIN: ZAE000003794
("Jasco" or “the Group”)


UPDATE – COMPETITION COMMISSION RULING ON THE PROPOSED ACQUISITION OF
CROSS FIRE MANAGEMENT PROPRIETARY LIMITED


INTRODUCTION
Shareholders are referred to the SENS announcements published on 22 March 2017 and 1 June 2017,
wherein shareholders were advised that Jasco had entered into a sale of shares agreement
(“Transaction Agreement”) with John Henry Cross (“the Vendor”) and Cross Fire Management
Proprietary Limited (“Cross Fire”). In terms of the Transaction Agreement, Jasco proposed to acquire
65.4% of Cross Fire for a maximum aggregate purchase price of R52.3 million (“the Transaction”).


COMPETITION COMMISSION RULING
The Competition Commission announced their decision to prohibit the merger transaction, and in their
view, found that the merger will result in a substantial prevention or lessening of competition in the
market for active fire protection services, particularly in the Western Cape and Gauteng regions.


The Group does not share the views of the Competition Commission and might appeal the decision for
reconsideration by the Competition Tribunal.


SUSPENSIVE CONDITIONS
The approval of the merger transaction by the Competition Commission is a material suspensive
condition. As announced previously, the date for all the suspensive conditions to be met was
extended to 31 July 2017.


Midrand
3 July 2017


Sponsor
Grindrod Bank Limited

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