EMELIA SITHOLE, Johannesburg | Thursday 2.40pm.
TELECOMS, media and entertainment group Johnnic said on Thursday it is sitting on a cashpile of close to R3-billion, which it plans to use.
Finance Director Jacob Modise said the group is mulling several options, including clearing an almost R1,5-billion debt in Johnnic Communications. He said an announcement will be made within the next three months.
”There’s a whole host of opportunities…I don’t think we’re going to have a problem in finding a place for cash in Johnnic,” he said.
Modise said the group — South Africa’s premier black-controlled enterprise — has enough resources to fund projects in high-growth areas such as telecommunications, media, e-ventures and entertainment.
Most of the cash in Johnnic’s war chest comes from its sale over the past year of non-core assets, part of a wide-ranging restructuring to streamline operations and focus on its now core media and communications-related businesses.
The disposals also helped it wipe out R4-billion in debt, leaving it leaner and more focused.
Johnnic’s interests include cellular services provider M-Cell, media group Johnnic Communications — formerly known as Omni Media Corp — and Internet services firm M-Web.
The restructuring has won investor approval, with Johnnic shares winning a positive rerating over the past year. Johnnic stock was last trading at R94,80, near four-week highs and well up from a low of R22,50 rand hit in December 1998.
”What’s been delaying things is that there have been a couple of transactions in Johnnic Communications subsidiaries…There will be an announcement soon because there’s more clarity on these other transactions,” he said. — Reuters