John­com an­nounces re­struc­tur­ing

Finweek English Edition - - Main stories this week -

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.”

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