ATTEMPTED TAKEOVER BLUES
Protech Khuthele has issued a trading update saying first-half earnings will be lower by about a quarter, and, in part, it blames a R13m charge from the now lapsed attempted takeover by Eqstra. R13m may not seem like a lot, but in the last financial year total profit was around R18m and for the comparable period last year the six-month earnings were some R15m. So, seemingly, if not for the cost of fighting off Eqstra, it would have come in with much better numbers, and further it shows how risky an attempted takeover can be for a smaller firm. Not only does it divert management attention, it also costs a packet of their profits. At least the cost is once off and Protech can move forward but the bigger question remains, what does Eqstra plan to do with its 32.77% stake?
Protech Khuthele Holdings