JSE-listed outsourcing company Business Connexion (BCX) has issued a cautionary, warning shareholders that it is in negotiations that could affect its share price.
The company made the announcement in a Stock Exchange News Service Statement yesterday. It says shareholders should be cautious when dealing in its stock.
BCX did not clarify what form the negotiations were taking and whether it was disposing of or buying another entity. The company has recently made several purchases.
The statement follows its announcement in June that it had bought a 50% plus one share stake in Dusty Moon Investments 333, for R240 million, in a bid to grow its presence in the managed print services arena.
BCX's wholly-owned subsidiary, Business Connexion Pty, bought the stake from the trustees of the Trawaral Trust, which will hold the balance of the business.
Last December, BCX said it was buying out the bulk of retail specialist UCS's business for R614.2 million. UCS sold Accsys, CEB Maintenance Africa, Destiny Electronic Commerce, UCS Solutions, as well as UCS Technology Services.
All of the subsidiaries - apart from Destiny in which UCS has a 70% stake - are wholly-owned by the listed software company. BCX subsequently sold Destiny Electronic Commerce to VeriFone Singapore, a subsidiary of VeriFone Systems, for R255 million.
BCX's buyout of the UCS units was the first large purchase the company had made since its merger with Comparex in 2004, which led to the creation of Business Connexion.
BCX's shares closed 1.14% higher yesterday at R4.45, a 5c gain on the day.
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