JSE-listed financial investment company Trematron Capital Investments is revisiting its stake in UK telecommunications firm Intec Telecom Systems.
Trematron, a locally-listed private equity fund, told shareholders it is reviewing its R38.6 million stake in UK-based Intec Telecom Systems.
Intec, listed on the London Stock Exchange, develops, implements and supports business and operations support systems for most of the world's largest communications providers.
So far, Trematon has sold just under a third of its shareholding in the company, which also provides products in billing, mediation, activation, rating and charging, as well as solutions in the IPTV, mobile, voice over IP and wholesale arena, for R16.2 million.
As the firm is reviewing its shareholding in the company, it has urged shareholders to exercise caution when dealing in its shares. Proceeds earned from the disposal will "be applied by the company towards other investments which are able to generate superior returns".
Trematon, an investment group that operates principally in SA, says its 7.7 million shares in the UK firm are worth about R38.6 million and the stake is considered a material part of the group's net asset value at about 36.8%. The year before, this figure was 55% and, by the end of August 2004, Trematon's entire net asset value was tied up in the telecoms firm.
In Trematon's latest year-end statement, it said its investment in Intec dropped from R54.4 million to R38.6 million "as a result of a sharp decline" in Intec's share price. The shares dropped after a trading update in which Intec said it "would not achieve its projected revenue for the 2006 financial year".
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