Johncom announces restructuring
WHAT HAPPENED JOHNNIC COMMUNICATIONS announced its intention to split the company into two listed companies. The first entity, Opco, would control the group’s media and entertainment assets; the second, Johncom, would house the company’s 38% shareholding in Caxton. The move should facilitate a much-needed empowerment deal at Johncom that shareholders have been begging for.
WHAT OTHERS SAID A BUSINESS DAY columnist wrote: “The move has been received positively, as the complex nature of the shares – which have both direct and indirect links to Caxton – have caused frustration for potential empowerment partners.”
Business Report said: “The splitting of Johncom… could leave the… firm very exposed to the harsh realities of market forces. It’s possible they won’t survive.”