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Dialogue sells out of ContinuitySA

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 28 Oct 2010

Dialogue Group Holdings is selling its majority stake in ContinuitySA, after receiving an unsolicited bid for the unit.

The company told shareholders yesterday that it was selling its 51% stake in the business continuity company to CoroCapital, for R35 million. The news sent Dialogue's shares 20%, or 2c, higher, to close at 12c.

CEO Alan Farthing says the company had received several offers for ContinuitySA and finally decided to sell. In a statement, Dialogue says the offer was “reasonable in the current market” and the sale will provide value for shareholders.

ContinuitySA provides business continuity and disaster management services, with operations in SA, Botswana, Mauritius and Mozambique. The sale is supported by ContinuitySA senior management.

Dwindling assets

Dialogue started the year with five businesses: its three call centre units Dialogue SA, Sibize and Interaction; ContinuitySA; and a recruitment company for the call centre industry, CallForce.

Dialogue SA was liquidated in March, and in September, the group said it was “highly probable” that Sibize and Interaction would be discontinued.

In the six months to June, the company said ContinuitySA was impacted by tough trading conditions as clients put off implementing business continuity programmes, but was profitable at half-year.

Farthing could not elaborate on how ContinuitySA's contribution to the group would be replaced, but said further information would be provided to shareholders in a circular to convene a meeting to vote on the disposal.

Dialogue bought its stake in ContinuitySA in the middle of 2007 for a maximum amount of R41 million. The sale is subject to several conditions.

Related story:
Dialogue reassess strategy

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