Former Y3K in BEE talks

By Iain Scott, ITWeb group consulting editor

Johannesburg, 15 Aug 2005

ISA Holdings, formerly Y3K Group, is in talks that could see 30% of its equity being sold to a black economic empowerment (BEE) partner.

The group announced this morning it had entered into negotiations with unnamed potential partners to acquire up to 30% of ISA`s shares by way of a new issue of shares for cash.

"The price to be paid will be no less than a 10% discount of the weighted average traded price of the group`s equity securities measured over the 30 business days prior to the date of this announcement, being 40c per share," the group says in a statement to shareholders.

It adds that the potential partners have approached the Development Bank of Southern Africa (DBSA) as a potential financier.

The participation of the DBSA is subject to various conditions, including the completion by the DBSA of a due diligence on the viability and sustainability of the deal.

ISA, which is positioning itself as a holistic, rather than specialist, security services provider, listed on the JSE`s alternative exchange, AltX, by way of a reverse-listing into Y3K Group.

The ISA share, which closed unchanged at 45c on Friday, was untraded by early this afternoon.