Kunene Technology (KTL) is to be delisted and liquidated after unbundling its shareholding in Grintek.
The liquidation will collapse the current Kunene pyramid structure. KTL is majority-owned by Kunene Finance Company, a subsidiary of the Kunene Brothers group.
After the unbundling of Grintek, KTL will be left with no operating assets, and the company has proposed liquidation by way of a members` voluntary winding-up.
Kunene Finance Company will be the largest Grintek shareholder, with a 33% interest. The second-largest shareholder will be Old Mutual Life Assurance Company SA with about 20%.
The company says since Kunene Brothers is the controlling shareholder of Kunene Finance Company, the representation on the Grintek board and active ownership involvement in the affairs of Grintek will not be affected by the unbundling.
KTL says its board believes it is in the interest of its shareholders to unbundle the Grintek shares to release value to KTL shareholders by eliminating the historical discount at which KTL shares have traded relative to the value of the underlying investment in Grintek.
The company is proposing that KTL shareholders receive 255.87278 shares for every 100 KTL shares held.
The unbundling will be by way of a dividend in specie and a reduction in share capital and share premium.
The unbundling, delisting and winding-up are subject to shareholder and regulatory approval.
The company says shareholders, including directors, holding 63% of the issued capital, have undertaken to vote in favour of the resolutions at a general meeting scheduled for the morning of 18 April.
It adds that a circular detailing the process will be sent to shareholders on Wednesday.
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