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Picture: SUPPLIED
Picture: SUPPLIED

In a sign of its confidence SA’s tech sector, Standard Bank is buying up Mustek shares at a rapid rate. The technology group reported on Tuesday that Africa’s largest banking group by assets now held 14% of its equity. 

Mustek said it had received formal notification “in the prescribed form that Standard Bank has acquired a beneficial interest in the securities of the company, such that the total beneficial interest in the securities of the company held by Standard Bank is now 14% of the total issued share capital of the company”.

This is a substantial increase from the 5.21% the bank held as at June 13. 

The company said it had filed the necessary notice with the takeover tegulation panel of the development. 

According to the group’s 2023 annual report, Mustek’s largest shareholders at June 2023 were the David Khan Trust with 16.6%, Old Mutual Life Assurance with 11.4% and Mustek Electronics Properties at 6.4%. This would make Standard Bank the company’s second largest investor. 

Mustek, valued at R574.82m on the JSE, is an assembler and distributor of ICT products. It was established in 1987 and listed in 1997. The bulk of its revenue comes from sales of hardware brands including Acer, ASUS, Samsung and Lenovo.

Revenue for the six months to end-December declined 13% year on year to R4.27bn as the business was hit by the economic downturn and accompanying high inflation and interest rates, and poor consumer and investor demand and confidence.

Even Mustek’s green energy products, which had been a key driver of revenue growth in the previous comparable period, fell 55%.

The group’s two largest segments Mustek and Rectron saw revenue decline by 15% and 9.9% respectively. Its IT training company, Mecer Inter-Ed experienced a slight decline in revenue to R46.2m from R48.8m.

In 2022, the ICT group named Hein Engelbrecht its CEO after the death of founder David Kan.

Mustek shares were 4.5% higher in afternoon trade on Tuesday at R9.99.

gavazam@businesslive.co.za

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