Johannesburg, 20 Feb 2004
Talks between MGX and potential black economic empowerment (BEE) partner Vulisango Technology Investments have come to an end.
MGX and former BEE partner Motswedi parted ways acrimoniously in 2002, but the group disclosed last April that it had reached an agreement in principle with Vulisango "regarding its participation in two of the group`s businesses".
However, MGX is in a restructuring process that will see it owning only one business. The group admitted in November that it would have collapsed were it not for the intervention of its bankers.
Since then it has been disposing of its subsidiaries as part of a restructuring programme that will leave it with only Metrofile and see it delist from the JSE.
The intention has still been to bring a BEE partner into the new structure.
However, MGX says in an update to shareholders that "on 22 January 2004, MGX and Vulisango Technology Investments, by agreement, terminated these discussions".
But the group says it is still in advanced discussions with other prospective BEE partners regarding participation in Metrofile.
"The directors of MGX are of the opinion that an agreement with one of the prospective BEE partners will be concluded in the near future," the group says.
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