JSE-listed ConvergeNet has entered into negotiations that could materially affect its share price should they be successfully concluded.
The news sent its share price 7.69% ‑or 2c - higher to close at 28c yesterday as more than three million shares changed hands.
The company recently changed ownership, after a consortium bought out a majority stake and just more than 30% of minority shareholders accepted 26c a share for their stock.
Earlier this month, ConvergeNet said it would hold a shareholders' meeting on 20 June, which seeks to gain approval to oust directors, consider non-executive directors' fees and gain a general authority to issue and repurchase shares.
In February, a consortium led by Trinity Asset Management bought a controlling stake in ConvergeNet, and said it aimed to oust several directors, including CEO Pieter Bouwer.
At the time of the buyout, Trinity CEO Quinton George said ConvergeNet's expenses were too high and its board too costly, because it has 13 directors, which should be shaved to six.
George said Bouwer, executive director Gordon Edwards and non-executive directors Michelle Krastanov and Mpho Scott had been asked to resign. So far, only Scott has left the group.
In the six months to February, ConvergeNet reported revenue down R496.6 million to R416.5 million. The group reported a total loss of R6.3 million, compared with a R17.7 million gain in the first half of last year.
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