JSE-listed InfoWave has entered into an R11.7 million deal with Sbu Shabalala, which will see the company change its name, top management and BEE status.
This morning the company told shareholders it would acquire Shabalala`s 100% interest in Microzone Investment Holdings and his 7.5% direct interest in ApplyIT. Microzone holds a 67% interest in Adapt-IT and a 70% interest in Isizinda Consulting.
As a result, InfoWave`s interest in Adapt-IT, ApplyIT and Isizinda will rise to 100%, 74.4% and 70% respectively.
The R11.7 million price tag will be settled by way of a mix of treasury shares and the issue of new ordinary shares at a price of 71c per share. This will bring Shabalala`s stake in InfoWave to 16.9%, and the company`s BEE ownership to 37.8%.
As part of the deal, CEO Tiffany Dunsdon will step down to make way at the top for Shabalala. Dunsdon will become commercial director, says InfoWave.
The company will also ask shareholders to approve a name change to AdaptIT Holdings.
In a separate statement, Shabalala said he expected few changes to the companies` daily operations.
"InfoWave was founded on a set of principles that are still valid today and which we will continue to promote as key to our success. The new AdaptIT Holdings will focus on niche and mainstream application solutions, both proprietary and custom-built, business consulting and IT outsourcing. Business will continue as usual," he said.
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