Global Technology Investment Holdings` (GTIH`s) investment in Temenos Holdings is to be repositioned within GTIH`s JSE-listed subsidiary, Global Technology Holdings (Glotec).
Glotec company secretary Willie Snyman says Glotec is in talks with its holding company relating to GTIH`s investment in Temenos, a banking software developer and supplier of the Globus banking system.
It is expected that the Temenos investment will be transferred at its "cost plus carry" value and that Glotec`s net asset value will be enhanced significantly in the process.
"The proposed allocation price of Glotec shares to GTIH, in settlement of this transaction, with be at a 5% discount to the weighted average price of Glotec shares on the JSE for the 30 days prior to the date of publication," he says.
Snyman says the decision was made because Glotec has significantly strengthened its relationship with Temenos through, among others, a joint venture between the two companies to market and implement Globus banking systems in Australasia and South America.
In addition, the relationship has been strengthened by an acquisition by the joint venture of Solace Australia; GTIH acquiring a 14.78% stake in Temenos; and significant Glotec representation on the Temenos board.
Snyman says that about half of Glotec`s future revenue will be earned offshore in hard currency as a result of these achievements as well as the restructuring and improved focus on core business over the past year.
He does not expect Glotec`s earnings to be materially affected if the negotiations are successful, although the talks could have an effect on the share price.
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