DTH delisting sanctioned

The court has sanctioned JSE-listed Dynamic Technology Holdings' (DTH's) buyout by Xantha Properties, the last approval the company needed for the deal to go ahead.

DTH must now file the court order with the Companies and Intellectual Property Office, and agree on dates with the JSE to pay out shareholders and delist.

Company secretary and director Derek Hughes says the court sanction was the final approval required for the deal to go ahead and DTH will soon notify shareholders of its last trading day.

In June, DTH told the market it had received an offer from Xantha Properties to buy it out for R30 million. The offer would result in DTH's listing being removed from the JSE, it said. Shareholders approved the buyout in July.

Xantha, which is largely controlled by some of DTH's management team, will buy 28.8 million DTH shares. The bid equates to R1.05 a share, which is 50% higher than the 70c its share was trading at during the time of the announcement.

DTH was formed in 1999 and listed on the JSE in November 2007. However, it said the cost of maintaining a listing was not worth the expense, as its shares were not well traded, which would make it difficult to issue stock for cash to fund an acquisition.

DTH said in June that being bought out by Xantha and delisted is the best way to unlock value for DTH shareholders and the group by providing interested shareholders the opportunity to exit their investments in DTH.

“In addition, this will afford management the opportunity and resources to focus on operational issues within an unlisted environment, without the distraction of regulatory and shareholder matters,” the company said in the announcement to shareholders.

DTH says on its Web site that it is an empowered software and services business, and provides software solutions, mostly based on the Microsoft platform. The company employs more than 140 staff, and has offices in Johannesburg and Cape Town. Its focus sectors include retail, financial services and telecommunications.

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