Idion liquidates

Johannesburg, 22 Sep 2006

JSE-listed Idion Technology Holdings is to sell off its only asset to a US-based group and then wind-up the company, delisting it.

Idion is selling Vision Solutions International to US firm IS Holdings, a wholly-owned affiliate of private equity firm Thoma Cressey Equity Partners, which incorporated IS Holdings for the purposes of the transaction.

MD Nicolaas Vlok says in a statement: "The Idion board has believed for some time that the Idion share price on the JSE did not reflect the true value of the company. This resulted in the Idion board examining various ways to unlock increased value for shareholders and to this end it engaged a US investment bank to conduct a strategic review of the various options available.

"After evaluating several options, the board concluded that a transaction with Thoma Cressey represented an excellent opportunity to unlock shareholder value."

Vlok is also CEO of Vision Solutions and he, along with the Vision senior management team, will remain in place post transaction. IS Holdings also has local implementation partners and it is hoped that it will continue to maintain a local presence.

Capital inflow

The sale, for between $62.5 million and $63.5 million, is expected to be completed by the end of next month and the company is expected to be delisted from the Johannesburg bourse as of 13 November.

The amount, explains Corne Arnold, executive director of corporate communications, is reasonably expected to fall in this range and is subject to several factors, which will be detailed in the shareholders circular to be posted on 4 October.

The distribution to shareholders, expected to be R3.43 per share, will be distributed out of Idion`s share premium and its share capital account, she says.

So far, 73.19% of shareholders have given an irrevocable agreement to support the transaction, which will see about R380 million after costs, which are still to be determined, come into SA, based on shares in issue and the expected distribution amount.

The transaction remains subject to several conditions, including shareholders agreement to the deal.