A local consortium is buying US-based Zephyr Management Africa Investment Fund`s stake in IT services and solutions company ATIO Corporation.
Although the value of the deal is not being disclosed, ATIO says it is a "multimillion-rand investment" by Ethos Technology, which will enable the Ethos-led consortium to buy out Zephyr`s shareholding.
Zephyr`s stake became available when the US-based private equity shareholder - ATIO`s largest shareholder - decided to realise its eight-year investment.
ATIO CEO Chris van der Sande says the company cannot disclose what percentage of ATIO was held by Zephyr as "we don`t want that in the public domain".
The consortium, which also includes Thuthukani IT Services - ATIO`s empowerment partner - and ATIO management, is to make an offer for all ATIO shares it does not already own.
"There are quite a few other shareholders," Van der Sande says, adding that there are many small shareholders with an insignificant combined stake, as well as three larger minority shareholders. However, the three larger entities have accepted the offer.
"As a result of this transaction, ATIO Corporation will now become a 100% South African-owned company, and is poised for further strong growth in all its business units," says Van der Sande.
The deal will see both Thuthukani and ATIO management increase their shareholding, with Thuthukani raising its stake from 25.1% to 35%. Van der Sande declines to quantify the shareholding of Ethos and ATIO management.
"Ethos will be a significant shareholder while management will be a minority shareholder," he says.
Although there will be changes to the board to reflect the new shareholder structure, Van der Sande says the company`s strategy and operations will remain unchanged.
The deal is still subject to the approval of the Competition Commission and the Securities Regulation Panel.
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