JSE-listed IT solutions group Contlan Holdings has begun talks which could result in a change of control of the group.
Contlan says in a cautionary notice that it has agreed in principle to sell its project services division to Brampton York Software Technologies, a recently launched company within the Brampton York group.
Brampton York`s MD, Stuart Mackereth was appointed to the Contlan board last year - replacing Clee Roy, who resigned.
Contlan adds that it "has entered into discussions regarding a material acquisition, which may result in a change in control of Contlan if successfully concluded".
Contlan recently reported a headline loss of 0.97c a share for the six months to end-August, which it blamed on market conditions, restructuring costs and disruption caused by a disposal intended to recapitalise the group.
The results for its maiden year to February 2000 fell far short of pre-listing forecasts.
Mackereth says the deal includes the transfer of the Johannesburg-based operation and its existing client base.
He notes that the project services acquisition is part of Brampton York`s strategy to increase its range of IT solutions for the financial, media, telecommunications and IT sectors.
"In addition, the opportunity now provides us with the enhanced platform to pursue an aggressive marketing drive to further establish ourselves in our niche industries.
"We spent considerable time looking into the strengths of the Contlan Consulting business, including its blue-chip client base and projects currently in progress, which provides an advantageous element to the Brampton York strategic direction."
The Contlan share price was unchanged at 4c this morning. It has been untraded since early November.
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