LogicalOptions (LogOpt), formerly Education Investment Corporation (Educor), says in its prelisting statement that its acquisition focus is likely to be in the IT arena.
The company listed on the JSE`s education and staffing sector today.
The LogOpt share opened at 1 100c but had lost 250c or 22.7% to trade at 850c by midmorning. By that stage 29 800 shares had traded.
LogOpt is a provider of skills outsourcing and supplier of IT and consulting services, and was created with the restructuring of Educor following the acquisition of Naspers`s National Private Colleges.
The group, which owns 50% of IT skills and resources provider Paracon, says it has substantial cash resources to take advantage of acquisition opportunities both locally and internationally.
"Several acquisitions have been made in the IT sector, including Professional Consulting Network in the US, and several other opportunities are currently being investigated," it says.
LogOpt`s other subsidiaries include recruitment and placement consultancies PAG and Kelly, and it has developed a network of recruitment businesses in the US.
"The focus created by the restructuring of LogicalOptions` education businesses into a new company, Educor Limited (New Educor), will enable senior management of LogicalOptions to concentrate fully on the development of these businesses which have strong growth prospects and scope for maintenance and improvement of operating margins," the group says.
Educor, which listed about 90.3 million shares on Monday, was unchanged from its opening price of 250c by midmorning after 42 500 shares changed hands.
LogOpt is confident about its prospects in the outsourced and temporary employment field as well as in IT consulting.
"The continuing undersupply in the South African market of skilled IT consultants provides significant opportunities for Paracon."
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