Johannesburg, 04 Jul 2003
Global Technology`s woes are continuing, with the group announcing a decision to wind up some of its subsidiaries. At the same time, another of its executive directors has resigned.
Glotec published a notice yesterday saying only that Pat Moffett had resigned with effect from Wednesday this week.
Last month the group announced the resignation of CEO Ray Leonard, who has formed a consortium negotiating to buy Glotec`s banking division and certain parts of the professional solutions division.
The move would leave Glotec with the business intelligence, insurance systems and manufacturing and distribution systems operations.
However, the talks appear not to have gone smoothly.
"The board and the consortium have failed to reach agreement on terms acceptable to the parties regarding certain parts of the banking division, in particular the following subsidiaries: Temenos Southern Africa and Global Technology EBS," Glotec says in a notice published last night.
However, the parties are still in talks about the balance of the businesses.
The group says that due to the continued distress and funding requirements the affected subsidiaries are placing on the Glotec group, as well as the inability to sell them, the subsidiaries` boards have resolved to apply for their voluntary winding up.
"The board is currently investigating the financial effects of the voluntary windings up on the historical financial information of Glotec. If necessary, shareholders will be advised of these financial effects."
The extent of Glotec`s troubles was highlighted in April when Glotec`s auditors expressed concern about the group`s ability to continue as a going concern.
Glotec incurred an attributable loss of R379 million for the year to end-December 2002, while the balance sheet recorded current liabilities of R243.57 million, almost double current assets of R124.83 million.
The Glotec share was trading at 4c on the JSE early this morning, 1c or 20% down on yesterday`s close.
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