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JASCO ELECTRONICS HOLDINGS LIMITED - Further Update Competition commission ruling on acquisition of cross fire Management Proprietary Limited

Release Date: 01/08/2017 17:05
Code(s): JSC     PDF:  
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Further Update – Competition commission ruling on acquisition of cross fire Management Proprietary 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”)


FURTHER 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, 1 June 2017 and
3 July 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
On 3 July 2017 shareholders were advised of the Competition Commission’s decision to prohibit the
merger transaction on the basis that, in their view, 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. Jasco still does not share this view held by the Competition Commission.
After careful deliberation, both Cross Fire and the Group has decided not to appeal the decision by
referring it to the Competition Tribunal for reconsideration.


SUSPENSIVE CONDITIONS
The approval of the merger transaction by the Competition Commission was a material suspensive
condition and as was previously announced, the date for all the suspensive conditions to be met was
extended to 31 July 2017. Consequently, given that not all the suspensive conditions were met, the
Transaction is regrettably terminated.


Midrand
1 August 2017


Sponsor
Grindrod Bank Limited

Date: 01/08/2017 05:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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