Crux Technologies is to become a cash shell after disposing of the contracting business of subsidiary CruxInfoTech to the Mantis Consortium.
The group has agreed to sell the contracting business to the consortium (comprising Zafiris Zafiropoulos, Wilma Cloete and Mantis Projects) for a maximum sum of R16 million, which includes R1 million for selected office and computer equipment at book value.
Crux says the proceeds of the sale will be used to settle its net liabilities, with the remaining balance to be distributed to shareholders on the delisting and winding up of the group.
Crux announced last month, with the release of its results for the six months to end-November 2001, that after a succession of woes it had reconsidered its strategic direction and had decided to rationalise its operations.
The disposal of the contracting business as a going concern includes all current client contracts and the assignment, or sub-lease, of the current lease over the premises at Crux House in Midrand.
The group says the net asset value of the disposal assets, other than the fixed assets, is nil.
CruxInfoTech was created through the merger of Cephas Computer Services and Choice-1 Consulting. The holding company, Crux Technologies, was listed in the JSE`s IT sector in August 1998.
The group says that as it will be a cash shell after the disposal, it will apply to transfer to the JSE`s cash companies sector.
The disposal could lead to the delisting and winding-up of Crux, it adds.
The Crux share price was unchanged at 2c this morning.
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