Douglas Reed, MD of Alt-X listed Internet service provider (ISP) DataPro, will buy almost 15.8 million shares in the company for R12.3 million.
According to a JSE statement issued yesterday afternoon, Reed will purchase the single stock future securities on 21 December 2006, at a contact price of 78c.
"The Boerbean Trust, the family trust of the director [Reed], has pledged 15 767 200 shares as security for a loan in order to facilitate the above contract - the Boerbean Trust remains the registered holder of the shares," explains the note.
DataPro says the deal is in line with Reed`s positive view on the outlook of the company, and will provide him with additional funds to continue investing in DataPro in the future. His interest in the company will increase by 3.26% as a result of this transaction.
Reed could not be reached for comment this morning.
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