Even though FrontRange`s shareholders have yet to meet, the company`s delisting next month looks guaranteed.
FrontRange is in the process of disposing of its US-based FrontRange Solutions - best known for its GoldMine customer relationship management software - as well as Cayo Communications and FrontRange Solutions SA.
The buyer, Ferrari Holdings, is paying $185.2 million. The final amount to be distributed to shareholders will depend on exchange rates.
The distribution will be equal to the aggregate of $0.93, less secondary tax on companies, says FrontRange. This equates to about R5.54, based on an exchange rate of R6.54 to the dollar. However, it adds that shareholders will be advised of the final amount on or before the record date, expected to be 6 January.
The FrontRange share is expected to be suspended on 30 December and the listing terminated on 10 January.
FrontRange issued an update last night, saying that 17 shareholders owning about 64.1% of shares, are eligible to vote and have said they will vote in favour of the disposal and subsequent distribution of the proceeds to shareholders.
The undertakings include those made by FrontRange directors, who are voting in favour of the deal. Shareholders are to vote in a general meeting on 21 December.
"Given that all of the resolutions to be presented to the general meeting are ordinary resolutions, which in terms of the Companies Act are only required to be passed by a simple majority of shareholders, the passing of such resolutions is assured," the company says in its update.
FrontRange CEO Michael McCloskey will remain at the helm of the company, and his executive team will remain intact. FrontRange Solutions SA will continue to be headed by MD Tracey Newman.
The FrontRange share was trading at 560c this morning, up 10c or 1.8% from yesterday`s close.
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