It is simply not true that Square One Solutions Group embarked on a takeover campaign relating to Choice Technologies, says Square One.
It has rejected the comment, made by Choice CEO Semela Tseka, that there appears to be an orchestrated attempt by Square One to eliminate an opposition company. Choice approached Square One and not vice versa, it says.
ITWeb reported yesterday that a storm is brewing between black-owned IT company Choice Technologies and JSE-listed Square One Solutions Group. The latter had filed a provisional liquidation order against Choice, through subsidiary Structured Infrastructure Solutions (SiS), for money allegedly owed to it.
Square One refused to comment yesterday morning, saying the matter is sub judice, and that a meeting between itself and Choice would be held that afternoon.
Square One has since provided a formal response, issued today through Kobus Swart of Schwarz - North Inc Attorneys, to provide the “factual background”.
In the statement, Square One responds to Tseka's allegations, made in an internal memo that was e-mailed to staff and is in ITWeb's possession. These claims include that Square One used Choice's confidential financial information, gained during a due diligence, to put pressure on Choice shareholders to sell, or risk facing liquidation.
“This is once again not true,” says the document. “Tseka invited Square One to come up with a potential solution, which gave rise to a joint venture (JV) agreement being drafted and signed between the two companies.
“Choice failed to honour the JV. Square One then indicated that should the JV agreement not be honoured, that the monies due and owing to SiS needed to be paid, and that Square One will take legal counsel on the apparent repudiation of the JV agreement. As such, SiS demanded payment and when same was not forthcoming, applied for the liquidation of Choice.”
Talking Tecor
Square One also disputes suggestions that media reports regarding Square One's involvement in the liquidation of Tecor prompted the National Empowerment Fund (NEF) to request Square One to provide guarantees for the purported funding.
“It is a fabrication that the NEF requested Square One to put up guarantees as a result of the alleged Tecor newspaper articles. Tecor was wound up by one of its own directors, Mr Nico Oosthuizen, and the application was supported by Square One Solutions Group Limited; as such it is a fallacy that Tecor is opposing any liquidation, as it is already liquidated.
“To the best of our collective knowledge, no charge of fraud and/or theft has been laid by Tecor against Square One.”
To read Square One's full statement, please click here.
Related story:
Choice fights liquidation order
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