FoneWorx is making "positive" progress in wrapping up conditions around its acquisition of Value+ Nettwork.
Last July, FoneWorx announced it and Value+ Nettwork would merge to create a R478 million company. FoneWorx said it would pay R191 million through the issue of shares at 211c for Value+, which includes a 50.1% stake in Opengate Technologies.
The company's shares closed slightly lower yesterday, losing 1.38%, or 3c, to end at 215c. The JSE's all share index ended 0.68% higher.
FoneWorx is buying 75% of Value+ from the Kirsh family and the balance from several other shareholders, including the Amazing Voucher Trust, Pepper Coin Investments and Worldwide Capital.
Based on the future profitability of Opengate's Network Services Division, FoneWorx (which will change its name to Value+) could potentially pay an additional amount in shares, capped at R960 million.
FoneWorx says shareholders should continue to be cautious when dealing in FoneWorx's securities until a further announcement, incorporating the pro forma financial effects of the acquisition of Value+ Nettwork, is made.
In the most recent financial year, Value+ turned over R154.4 million, while FoneWorx's revenue gained 7.7%, to R98.6 million.
Foneworx has five operating entities, including BizWorx, which focuses on business-related products, and MediaWorx, which provides information and entertainment services. It also has three early-phase units: CarbonWorx, DRWorx and IDWorx.
At the end of the deal, Issie and William Kirsh, through family trusts, will own 49% of FoneWorx. All executive and non-executive directors will retain their current stakes.
Current CEO and Value+ founder, William Kirsh, will become executive chairman of the merged entity, while Mark Smith, currently FoneWorx CEO, will be CEO of the merged entity.
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