JSE-listed Global Technology Holdings (Glotec) has, through a series of transactions, bundled its commercial and industrial companies into a separate entity along with commercial and industrial solutions software company Intelliware.
Intelliware will have management control of the new company, of which Glotec will initially own 75%.
Glotec CEO Ray Leonard says the decision to restructure Glotec`s commercial and industrial investments is in line with the group`s stated objective of focusing on banking and insurance.
"Intelliware has a solid reputation and background, and its management provides the ideal vehicle for us to stay close to the commercial and industrial sectors - an important consideration," he adds.
In terms of the deal, Glotec has acquired a 49.9% stake in Arcfin Investments 30 (to be renamed Intelliware Commercial & Industrial), and a further 49.9% of Arcfin Trading 28 (to be renamed Intelliware Holdings).
The future Intelliware Holdings in turn owns 50.1% of Intelliware Commercial & Industrial. Intelliware has sold its business to Arcfin Trading 27, to be renamed Intelliware, a wholly owned subsidiary of Intelliware Commercial & Industrial.
Glotec will sell its 100% interest in Computer Support to the new Intelliware for R3.8 million, its 50.1% stake in Intrix to Intelliware Commercial & Industrial for R5.06 million, and its 51% interest in Global Technology Business Process Support to Arcfin Investments 30 for R0.8 million.
These deals would leave Glotec with a 62% stake in Intelliware Commercial & Industrial. However, it has bought an additional 13% for about R3.6 million, bringing its total shareholding to 75%.
Intelliware MD Kevin Mann, who will stay on as MD of the new company, says the companies in Glotec`s existing commercial and industrial division are all valuable companies that, combined with Intelliware`s strong management, will result in a formidable competitor in its sector.
"At the same time, this move will allow Global Technology to focus on its core business areas of banking, insurance and business intelligence.
"The result for Global Technology is two highly focused companies, with considerable breadth and depth of management, poised for growth in their respective markets," he says.
Glotec`s commercial and industrial division currently consists of value-added reseller Computer Support, software developer and distributor Intrix, and SAP outsourcing partner Global Technology BPS.
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