ConvergeNet has bought back 34 447 of its own shares from stockholders who held less than 5 001 shares.
Shareholders owning less than 100 shares were offered a buyout under the odd-lot offer, while those with 100 or more, but less than 5 001, were part of the specific offer, ConvergeNet explains in an announcement.
In total, more than 300 000 of its shares were targeted through the two offers.
The company offered 12c a share under the offers and its stock last traded at 13c. It will hold the 34 447 stocks in treasury.
The group announced its specific and odd-lot offers at the same time as it said it was going through a major restructuring that includes selling off several of its business units, shutting down its head office, and plans to retrench staff.
ConvergeNet's restructure was the result of its "deteriorating financial performance" due to "excessive costs and a lack of strategic focus".
In the six months to February, ConvergeNet posted a R23.2 million loss and made an operating loss of R28.6 million, compared to an operating loss of R8.3 million for the first half of the previous year.
The group is selling Sizwe, X-DSL, Telesto, its stake in Simat SA and EQ Tickets for a combined amount of R132.2 million. The funding will be used to pay outstanding debt obligations and for general corporate purposes.
Share