Kagiso Trust has acquired a 27% shareholding in Bytes Technology Group`s (BTG`s) South African operations in a black economic empowerment (BEE) deal valued at R228 million.
BTG`s local operations are to be housed in a new subsidiary, Bytes Technology Group SA (Bytes SA). The 39.1% stake in Digital Healthcare Solutions is not part of the deal.
The group says Kagiso is to subscribe for ordinary shares in Bytes SA, which will represent 5% of the increased issued share capital of Bytes SA, for R30 million cash.
BTG will also sell 200 000 "B" shares in Bytes SA, representing 22% of the voting rights in Bytes SA, to a Kagiso subsidiary at their par value. "Kagiso will thereafter control 27% of the voting rights in Bytes SA, with BTG controlling the remaining 73%," BTG says in a notice to shareholders.
The Kagiso subsidiary will have the option to subscribe for 220 000 ordinary shares in Bytes SA at R900 per share, exercisable over five years. On exercise of any share options, BTG will simultaneously repurchase and cancel a corresponding number of "B" shares at their par value.
Including the share options, the total value of the deal is R228 million, the group says.
"BTG has for some time stated its intention to introduce a BEE shareholder and to this end has held discussions with various parties. BTG and Kagiso have entered into this transaction as a proactive measure, prior to the implementation of a BEE charter for the ICT industry."
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