Conlog Holdings has agreed to sell its last operating business, Conlog, to a subsidiary of France`s Schneider Electronic Industries for R88 million.
The sale to Schneider subsidiary Merlin Gerin was made to eliminate group debt, Conlog Holdings says.
Once the deal becomes unconditional, the group will no longer own any operating subsidiaries. Assets will comprise only cash and receivables arising mostly from business disposals.
The Conlog business consists of the design, manufacture and sale of pre-payment electricity, water and solar metering revenue management systems as well as contract manufacturing.
The R88 million price tag consists of R55 million for intangibles and R33 million for the expected tangible net assets of the Conlog business on the date of the fulfilment of the conditions.
The R33 million will increase or decrease on a rand-for-rand basis with any fluctuations in the tangible net asset value at that date, subject to a maximum of R40 million.
In March, Satellite Data Networks (SDN) was sold for a nominal R2 000 to UUNet SA to free Conlog from contingent liabilities of R42.5 million.
Conlog owned 75% of SDN.
Had the disposal taken place at the beginning of the 16 months to end-December 1999, Conlog`s headline loss per share would have been 54.8c instead of 62.7c, while the tangible net asset value per share would have been 106.3c instead of 22.6c.
Share