Shares in media and entertainment group Johnnic Communications (Johncom) soared to a record high on Wednesday on continued speculation that Caxton is to make a bid for the group.
By 2.57pm, Johncom shares surged 5,88% or two rand to R36, although only 5Â 000 shares had traded in one deal. Caxton shares were only up nine cents at R10,50, but hit a best-to-date R10,70 on Monday.
Talk that Caxton will make a move for Johncom after it is unbundled from its parent company Johnnic Holdings next month have been circulating for some time.
“Caxton has also been at a new high this week, so I’m sure there must be something bubbling there. It looks like Johncom, rather than Caxton, is the target and I suppose a takeover would be good for both of them,” a dealer said.
He added that although only 5Â 000 Johncom shares had traded, there were plenty of bids (buyers) around, but no sellers. — I-Net Bridge