South African-based distributor of personal computers and electronic equipment Rectron said on Friday it planned to sell its 100% shareholding in Rectron Australia. By Gugu Lourie
The firm, which is part of the JSE-listed ICT distributor Mustek, said the Australian unit will be sold for more than AUD 1 million to IG3 Education Ltd.
The deal is effective from 1 October 2015.
Rectron added that the deal was part of its drive to dispose of non-performing and non core assets. It will utilise the proceeds from the sale to reduce its debt.
The net asset value of Rectron Australia at 31 December 2015 was R14.3 million and included a deferred tax asset of R95 million. The net loss after tax for the six months to 31 December 2015 was R2.2 million.
David Kan, the CEO of Mustek, is a 38% shareholder in IG3 Research & Applications that holds 62.97% stake in IG3.
The firm, which was established in 1995, provides coponents, mobility products, multinationals laptops, peripherals and printers, representing brands including Lenovo, Gigabyte, Transcent, Seagate, Everki, Samsung and Ricoh to name a few.
Distribution of high-tech ICT solutions has been Rectron’s key strength, but evolving trends in the market have prompted the firm to consider other revenue streams..