ARH buying RAC?

[topgun]

Both active in the electrical industry and both issued cautionaries this am - from ARH's results announcement today "With an ungeared balance sheet and significant cash resources, the group is well placed to capitalise on the acquisition opportunities which the current economic climate is expected to yield." ARH has net cash of R266m on hand while RAC has a market cap of R42.4m and recorded sales of R394m to Sept'10. Even at a handsome premium to the current shareprice of 40cps, this acquisition wouldn't make too much of a dent on ARH's cash.

[Harathke]

Wouldnt make sense, ARH is cable wholesaler and RAC is electrification and railing group... No real synergies.

[#3]

I would say there are definite synergies. Most wholesalers are only too desparate to get into the services arena, to generate annuity revenues, especially if the services player can generate additional sales of your product.