I-Fusion shareholders have given the board the go-ahead to implement various measures relating to the acquisition of a majority stake by JSE-listed investment company Bidvest.
The companies announced in May that Bidvest would acquire a minimum 60% of I-Fusion for between R63.3 million and R135 million, depending on I-Fusion`s earnings and arrears.
Shareholders at I-Fusion`s general meeting approved the amendment of the articles of association, cancellation and reduction of share capital, and the reduction of the par value of I-Fusion shares.
The shareholders also approved the increase in authorised share capital, the amendment of the share incentive scheme, the appointment of additional directors and the issue of shares for cash.
The company says the amendment of the articles of association, the cancellation and reduction of share capital and the reduction of share capital and the reduction of the shares` par value will be lodged with the registrar of companies once competition board approval has been received.
I-Fusion MD Ron Sackstein has said the move is a positive one.
"I-Fusion now forms part of a company that has a listed value of R16 billion," he says. "I-Fusion will give Bidvest the opportunity to create a platform and base for Bidvest`s ongoing e-commerce and Internet capabilities.
"Our opportunities are near limitless as the Bidvest Group of companies become I-Fusion customers."
Bidvest reported a fall in operating income from R11.8 million to R207 000 for the year to end February, despite a rise in turnover from R91.1 million to R150.9 million. Headline earnings fell to 4c a share from 13.2c previously.
The I-Fusion share, which soared from 68c to 94c on news of the planned deal, was trading at 98c late this morning.
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