Faritec shareholders have given their unanimous approval to the sale of a 30% stake in the company to an empowerment consortium.
The company announced last month that it would sell the stake to the J&J Group-led consortium that also includes union investment company Lesake Holdings.
J&J Group is an empowerment investment and management company with interests mainly in IT and financial services.
In terms of the deal, Faritec will dispose of 30% of all its operating subsidiaries, businesses and other assets to Faritec Investments, which is to be established as a wholly owned Faritec subsidiary.
The group will then dispose of 30% of its interest in Faritec Investments to the consortium for R13.23 million to be settled by the issue to Faritec of cumulative redeemable preference shares in the company that will hold the consortium`s interest in Faritec Investments.
Between the third and fourth anniversary of the effective date of the disposal, the empowerment consortium will dispose of its 30% stake in Faritec Investments to Faritec in exchange for the redemption of the preference shares and the issue of new Faritec shares.
The deal will also see Faritec acquire the operational assets of Consilience, an IT systems integration joint venture between J&J and Tata African Holdings.
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