AT­TEMPTED TAKEOVER BLUES

Finweek English Edition - - INVESTMENT -

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

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