Idion removed from JSE index

By Nicola Mawson, Contributing journalist

Johannesburg, 10 Nov 2006

Following the sale of its only material asset, Idion Technology Holdings will be removed from the JSE fledgling index and suspended from Monday.

In a note to shareholders, the company said the company would delist after the disposal of its issued share capital to its shareholders. The company will delist on 21 November.

Earlier this month, the company said it would pay out about R417 million 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.

The payout followed the completion of the deal to sell Vision Solutions International to US-based IS Holdings. As a result, the merger payout of $55.7 million after costs was paid out 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 hopes to continue to maintain a local presence.