Subject to the necessary approval, JSE-listed Contlan has announced it will sell its Project Services division as a going concern to Brampton York in exchange for the 2.1 million shares which Brampton York management holds in Contlan.
The South African Development Foundation will, through its 50% holding in Edutech, acquire all the Contlan shares currently held by Creation Software (56.3%) and Monarch Project Services (12.7%).
This will effectively place the foundation in control of Contlan, which will seek JSE approval to change the name of Contlan to Nova Education and Technology Holdings, and switch its listing from the venture capital sector to the development capital market sector.
As part of the deal, Contlan will acquire Financial Services of South Africa (Finsa), Edutech Curriculum Services and E-ducation Internet Portal from the foundation and Edutech Holdings, to be settled with the issue of new Contlan shares.
The rationale behind the acquisitions is to allow Contlan to expand its operations into the financial services and education sectors.
The full purchase consideration will be settled by the issue of new Contlan shares at 18.121c per share. The consideration sees a value of R25 million going to Finsa and R2 million going to Edutech.
The new entity will be under the leadership of JC Klopper as CEO, with CJ Booyens assuming the role of chairman. Both are currently in the employ of the South African Development Foundation.
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