SI­MON SAYS

Finweek English Edition - - INVESTMENT -

full year. African Bank’s prof its, and ul­ti­mately its share price, will cer­tainly re­cover, but the real ques­tion is when. Right now it is in a tail spin and it is go­ing to take some time to re­cover.

African Bank In­vest­ments the big­ger is­sues are get­ting in the way. It plans to sell MTEC, has con­verted the pref­er­ence shares to rolling debt and is con­sid­er­ing a rights is­sue. If it is able to con­clude all th­ese within a rea­son­able time­frame (the cur­rent f inan­cial year) it could come out the other end look­ing much bet­ter. How­ever, the risks are not in­signif­i­cant and a lot could go wrong, leav­ing the com­pany in a tight spot.

Jasco Elec­tron­ics Hold­ings

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