Advanced Technical Systems (Advtech) has revised some of the financial arrangements of the restructuring process which will see the group`s three listed entities being consolidated into one company.
Advtech undertook, as part of the restructuring, to dispose of its entire shareholding in Advsource Holdings to Advtech Education Holdings (Adved) in exchange for the issue of new Adved shares and the set-off of an inter-company loan.
However, the company says the set-off has been increased "to enable Advtech to settle all existing liabilities prior to its members` voluntary winding-up". The number of new Adved shares to be issued as part of the disposal will be reduced accordingly.
This means the disposal of Advsource to Adved for R186.7 million will be settled through the issue of new Adved shares at 137c each and the set-off of the inter-company loan of R88 million.
Subject to standard assumptions, the financial effects of the deal would have been to reduce Advtech`s earnings per share 3.4% for the year to 31 December 1999 from 37.7c to 36.4%, while net asset value would have risen 11.4% from 252.5c per share to 281.3c.
For the same period, Adved`s earnings per share would have increased 16.9% to 13.8c from 11.8c, with net asset value per share rising 8.0% to 106.5c from 98.6c.
Advtech`s share was untraded at 115c on Monday morning, Advsource`s share was untraded at 45c, and Adved`s share was untraded at 57c.
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