Idion Technology Holdings, which is to be delisted and wound up after the sale of its only material asset is completed, says it will pay out R417 million to shareholders.
The company told shareholders on Friday that the deal to sell Vision Solutions International to US-based IS Holdings has been completed. As a result, the merger payout - after costs - is $55.7 million, which will be converted to rands at an exchange rate of R7.49 a dollar, totalling R417.2 million.
This, said the company, translates into R3.59 per share as a payout to shareholders. The company added that, should there be a surplus after final winding up of the company, this would also be distributed to shareholders.
Idion announced in September that it would sell its only asset to the US company, a wholly-owned affiliate of private equity firm Thoma Cressey Equity Partners.
At the time, CEO Nicolaas Vlok said: "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 it will continue to maintain a local presence.
The company, which will delist on 21 November, has seen its shares track up recently. On Friday, after the distribution announcement, its shares closed at R3.51. Thursday's close was R3.33 and its 12-month high is R3.52, while its 12-month low is R1.05.
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