Both David Kan, the chief executive (CEO) of JSE-listed technology group Mustek, and Old Mutual increased their shareholding in the firm on Friday.
Kan, also the co-founder and major shareholder of the ICT supplier firm, hiked his holding to 25.42 percent, while Old Mutual on Friday said that its interest in the firm was now at 15.41 percent of the total share capital issued.
There are 61 million shares in issue.
Both the Kan and Old Mutual issues mean the increase in owned shares was due to “a decrease in the issued share capital of the company”.
On December 21, 2021, shareholders were advised that Mustek had acquired 3 000 000 ordinary shares in the issued share capital of Mustek on the open market, for a purchase consideration in aggregate of R39 962 546.37.
The general repurchase was effected in terms of a general authority to Mustek’s directors, which was granted in terms of a special resolution passed by the members at Mustek’s Annual General Meeting held on November 29, 2021, and comprises 4.69 percent of the total issued ordinary shares of Mustek at the date of the AGM.
Mustek in September last year reported a 248 percent leap in full-year headline earnings per share and said revenue climbed by more than a quarter to more than R8 billion as Kan said the firm was “ideally placed in an industry benefiting from the ’new normal’ that includes working from home and remote learning across the basic education and higher education sectors.”
Kan has been Mustek CEO since the Group's inception in 1987. The firm’s market cap has been steadily increasing, with it currently being valued at R910 million. Its shares are up 98.93 percent in three years and closed 0.81 percent up at R14.92 on Friday.
Adding to Mustek’s momentum, In October last year Samsung announced it had partnered with Mustek, saying that, “Samsung has now enhanced its distribution capacity. Its capabilities are strengthened through its partnership with Mustek, as it can leverage its larger footprint and route to market”.
There is market speculation that the company could be in the position for a buy out and then delisting.
BUSINESS REPORT ONLINE