Shareholders in JSE-listed IFCA Technologies have until Friday to take part in a mandatory offer that was sparked after Decaweb bought a large stake in the company.
Last August, the company announced that Decaweb's ownership went over 35%, which led to a change in control in IFCA and a mandatory offer being extended to its shareholders. Decaweb and a consortium currently own 40.46% of IFCA. As a result, IFCA shareholders were set to receive an amount of 7.72c a share and interest.
However, as IFCA has since issued more than 100.6 million shares, the company is offering shareholders the opportunity to become part of the consortium and stock can be bought at 8c a share.
Shares in IFCA closed at 9c on Friday, a 1c gain on the day.
IFCA was an investment holding company with two subsidiaries: IFCA sWare focused on the group's software solutions and services, while IFCA hWare was the group's computerised business equipment solutions unit.
Last month, IFCA reported a R33.9 million loss for the year to December and said it was moving away from being a technology provider into a diversified investment holding company. It recorded an operating expense of R32 million off the back of no revenue.
The lack of revenue is the “result of a transition phase during which the revenue model is being completely restructured”, said IFCA in a statement to shareholders. It added that higher operating expenses, up from R3.7 million a year ago, are because of “the corporate actions required to restructure the business model”.
IFCA intends wrapping up the purchase of Third Wave and Out & About Marketing and Media (OAMM), among others. IFCA is set to buy all of Third Wave and 45% of OAMM, but the deals have been delayed.
IFCA also signed a $100 million facility with Equity Partners last February, which it has yet to access. It says the facility will be used to fund future acquisitions and will be combined with other sources of funding.
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