A consortium, comprising Brait Merchant Bank management and Radiospoor Technology Holdings management and controlling shareholders, intends to offer to buy the shares held by minorities.
The move will result in the termination of Radiospoor`s listing on the JSE.
The consortium, which holds 84.1% of the total issued shares, is offering minorities 46c a share, representing a 28% premium to the share price of 36c on 24 May, the day before the company issued a related cautionary announcement.
Radiospoor sold its contract cellular business - its largest and most profitable division - with effect from 1 July last year.
In the past 18 months the businesses making up the IT division were either sold or discontinued, leaving Radiospoor with only its wholly owned prepaid cellular operations and a 47.5% stake in Matrix Vehicle Tracking.
"Radiospoor Prepaid will continue to invest in its cellular customer base and will also focus on developing and marketing services around wireless application technologies, which is expected to result in losses for at least the next 12 months," the company says.
"Matrix wishes to expand its existing offerings with additional value-added services which utilise new developments in GSM positioning technology."
The consortium believes the continued JSE listing is inappropriate because of the lack of critical mass of the remaining businesses, the unpredictable nature of the future earnings and Radiospoor`s inability to raise additional capital from institutional investors as a result of market conditions.
The share was trading at 43c by midmorning today, 5c or 13.16% up from yesterday`s close.
Share