The proposed management buy-out at MB Technologies could see the group shed smaller, non-core businesses in the MB Worksoft stable.
"There are one or two non-core businesses I would be happy to dispose of or assist with management buy-outs," says MB Tech CEO Leo Baxter.
He says there are several smaller companies within MB Worksoft with turnover of R20 million to R30 million. MB Technologies as a whole reported turnover of almost R2 billion in its 2001 financial year.
The group announced last month that a management consortium had proposed to pay 140c a share to buy the MB Tech stocks it did not already own.
The proposal values the group at almost R572 million, which means the consortium will pay almost R267 million for the remaining shares.
The consortium, which owns about 53.35% of the company, consists of the group`s founders - Baxter and chairman Mike McGrath - as well as senior management and Central Holdings.
Baxter says he has not made a final decision about the non-core businesses, "but there are one or two I would look at disposing".
There is no word yet from the board on the buyout proposal. "We are still going through the process on that," Baxter says.
He says feedback from shareholders indicates that the offer is being treated favourably. "Of course, the market has slipped since the announcement was made."
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