Johannesburg, 30 May 2002
JSE-listed Prism Technology is considering its options after having been approached by a number of local and international companies wanting to acquire the company.
The news comes after the cash-strapped company announced yesterday that it would have to make a R43 million debt provision for its South East Asian operations.
The provision, together with delayed deals, could see the company reporting a headline loss for the 2002 financial year.
Duncan Todd, director of mergers and acquisitions at Prism, says although it would be sad to see the company lose its autonomy, the company has to do what is best for shareholders.
"We are currently looking at a number of offers on the table. We haven`t actively sought possible buyers, but have been approached by a number of local and international entities. At the moment, we can`t predict an outcome, but we remain mindful of protecting our minority shareholders," says Todd.
Prism shareholders include local venture capital company Archway, local investment trust Genbel, international investment fund Sailing Intersun International, and Asian fund Tomori (10%).
Metropolitan has a holding after the rights issue conducted earlier this year, and Dimension Data and Pick 'n Pay still have interests in the secure electronic payments company.
Todd explains that some of the local investment funds would have a problem with an international buyer as they may be precluded from having an international investment in terms of either their mandate or Reserve Bank regulations. However, he says Prism will look to unlock the most value from any possible deal.
Despite the attraction of developing in rands and earning in dollars, Todd says it has been tough for Prism to compete effectively against industry giants like Nokia, and having international backing would hold some attraction for the company.
The Prism share moved up during morning trade today, swapping hands at 68c after a 66c opening.
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