IFCA Technologies has raised $100 million as part of its plan to shift its business focus away from the technology sector.
IFCA Technologies explains it is changing its investment strategy, and aims to provide financial services and treasury functions to facilitate the funding and development of projects within the mining, property and construction sectors.
The company says the $100 million facility, negotiated with Equity Partners Fund, will enable it “to invest in several exciting new projects and business ventures,” the company says. IFCA will change its name “immediately” to reflect its new business strategy.
IFCA is currently an investment holding company with two subsidiaries: IFCA sWare focuses on the group's software solutions and services, while IFCA hWare is the group's computerised business equipment solutions unit.
Its latest results, for the six months to June, indicate the company turned over R1.3 million, but made a R1.2 million loss. For the year to December 2009, its loss was R1.9 million.
Chairman Colin Clarke says the “three focus areas represent growth and value creation opportunities, as well as being sectors aligned with government strategy in terms of investment and job creation”.
Moving ahead
IFCA has already signed an agreement with Kutana Capital and Stonewall Mining, which will see Kutana and IFCA buy 35% of Stonewall. The deal will be concluded through the creation of a special purpose vehicle, in which IFCA will have a 30% stake, with Kutana holding the balance.
Stonewall Mining is a junior gold-mining company that has conditionally agreed to acquire two mining assets in SA's Eastern Goldfields, says IFCA. These assets are Transvaal Gold Mining Estates and Bosveld Mining, which collectively have resources of 3.3 million ounces.
“This acquisition will form the base for additional acquisitions in the resource environment, which will ensure ongoing and additional value creation for all shareholders,” says IFCA CEO Anthony Barnard.
The special purpose vehicle will swap shares in Stonewall for $8 million in cash and will provide it with a $5 million loan facility.
IFCA is in other negotiations to buy mining and manufacturing assets, which will result in a reverse listing for which it will have to get JSE approval.
Related story:
IFCA secures $100m facility
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