Jasco Electronics Holdings Limited (JSE:JSC) entered into a sale of shares agreement to acquire 65.4% stake in Cross Fire Management Proprietary Limited from John Henry Cross for ZAR 52.3 million on March 22, 2017. As a part of consideration, Jasco Electronics will pay an initial payment of ZAR 20 million, a first maximum deferred payment of ZAR 16.16 million, subject to the financial performance of Cross Fire for the audited 15-month period ending May 31, 2017 and a second maximum deferred payment of ZAR 16.16 million, subject to the financial performance of Cross Fire for the audited 13-month period ended June 30, 2018. The remaining shares of Cross Fire held by the current management team and will remain unchanged. The management team and John Henry Cross, Founder of Cross Fire will stay in place, with retention agreements for a minimum of two years. The conclusion of the transaction is subject to the fulfillment or waiver of certain suspense conditions, which include, but are not limited to, the transaction being approved in terms of the Competition Act, Act 89 of 1998, the delivery of a written waiver from the existing shareholders of Cross Fire of any and all pre-emptive rights in respect to the John Henry’s ordinary shares. The transaction is not subject to Jasco shareholder approval. All the conditions to the deal must be met by May 31, 2017. As of June 1, 2017, agreement has been amended by the extension of the date at which all suspensive conditions must be met from May 31, 2017 to July 31, 2017. As of July 3, 2017, the transaction has been prohibited by the Competition Commission and might appeal the decision for reconsideration by the Competition Tribunal. Etambo Equity (Proprietary) Limited acted as legal advisor and Samuel Kennedy Investments (Pty) Ltd acted as the corporate advisor for Jasco Electronics.