Log-Tek has finalised the sale of its advertising divisions Quickcut and Quickmedia to a consortium of shareholders including former Log-Tek director Harry Spain.
Log-Tek intends to focus the group on the core business operations of subsidiary Conlog and will change the group`s name to Conlog Holdings to reflect this.
Better known in IT circles as the holding company of Satellite Data Networks (SDN), Log-Tek is a large player in the prepaid meter industry. SDN`s newly appointed MD Antony Stafford was quoted in a previous ITWeb article as saying that the company`s main focus would be reaching annual revenues in excess of R60 million for the first year.
The sale price of the Quickcut group is R6 million in cash depending on certain conditions being met. The price may vary up to R9 million if the consortium lists or is disposed of.
Explaining the rationale behind the sale, Ian Deetlefs, chairman of Log-Tek Holdings, says Quickcut and Quickmedia are involved in the advertising industry and do not fit with the revised focus. In addition, the proceeds of the sale will be used to reduce borrowings.
After the restructuring, the main operating subsidiary of the Log-Tek Holdings group will be Conlog (Pty) Limited. "The group intends to focus its future operations on our areas of expertise in the design, manufacture and marketing of pre-payment revenue systems, automotive security electronics, contract manufacturing and other related products through Conlog, which is the largest contributor to turnover and profits," says Deetlefs.
Approval to shift the financial year-end from 31 August to 31 December in order to bring the group in line with its major clients has been granted to Log-Tek, whose share price has been suffering of late. The share reached a high of R19.30 on 10 July last year and closed at 86 cents on the JSE yesterday.
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