JSE-listed AST Group is selling its Business & Design Software (BDS) division to National Golf Network for R9.43 million.
The deal takes place against the backdrop of a turnaround strategy announced after a board reshuffle last year.
The group recently said it was in the process of carrying out a "business improvement and cost reduction programme" in a bid to improve the group`s fortunes.
Among other things, the plan involves AST being restructured into a single business entity with non-core business operations being sold or closed.
The group says BDS, although profitable, has been identified as non-core.
BDS provides and runs the National Handicap Network used by golfers. It also provides various other computerised solutions and services to golf clubs in SA.
The group says the sale to National Golf Network ensures the continuity of the Handicap Network and all other services.
The value of the deal consists of an R8.7 million cash payment and the transfer of debt of R0.73 million.
AST says it will use the proceeds for "general corporate purposes". The effects of the deal on the group`s earnings per share and net asset value are immaterial, it says.
The AST share was trading at 10c on the JSE by late this morning, up 1c from yesterday`s close.