Following the May announcement that all remaining subsidiaries were to be sold off, Brainware has completed negotiations for the sale of its interests in Amotec and Execusys.
Brainware also informed investors that the planned rationalisation of head office operations was "substantially complete".
This has meant the retrenchment of all head office employees, save a handful needed to assist with wrapping up the rest of the disposals and those who will assist with year-end audits.
The 50% Brainware holding in Execusys has been sold to NJ du Plessis, ex-Brainware director and executive director of Execusys, for R3 million. The deal includes a R700 000 dividend payment.
The deal has been settled in cash and Brainware says the money will be used to lessen the burden of its interest-bearing debt.
At the time of the May announcement, total debt amounted to R30 million.
The Amotec sale saw a management consortium relieve Brainware of its half of the company for R1.2 million. Some R600 000 of the settlement will be briefly reflected in the Brainware coffers, before it too will be used to alleviate interest-bearing debt.
The remaining cash is to be settled by no later than the end of September.
Brainware hopes to wrap up the sale of its remaining interests and subsidiaries within the next three months.
Once this has been completed, the company will revert to the cash companies sector of the JSE. It will then decide whether to use remaining cash, if any, to pay a final dividend and de-list, or make the required acquisitions in line with JSE regulations.
In terms of JSE regulations, a company in the cash shell sector has six months to make acquisitions or the listing will be terminated.
The market expressed its approval of the announcement, and by 10am today the counter had gained 50% to trade at 3c.
Related stories
Brainware acts to stop haemorrhaging share price
Share