JSE-listed document management company Metrofile Holdings has listed shares to facilitate taking over an image processing company, it says.
Metrofile is issuing shares to fund its purchase of KwaZulu-Natal based specialist image processing provider Innovative Document Management (IDM).
CEO Graham Wackrill says Metrofile's empowerment partner, the Mineworkers Investment Company, is purchasing the shares from IDM through the deal, which is worth almost R4 million. This will increase the empowerment company's stake in Metrofile to 32.8%, securing its position as single biggest shareholder in the company.
Wackrill says buying IDM gives Metrofile access to software and integration capabilities that the KwaZulu-Natal company has developed. It is quicker to buy out IDM than to try and develop the capacity internally, he adds.
Metrofile will expand IDM's custom-built offering into Gauteng and the Western Cape before rolling it out nationally, Wackrill says. The acquisition will add to revenue, but not materially.
The company is issuing 4.5 million shares at a price of 89.8c each at the start of trading on the JSE this morning. The document management company's shares closed yesterday at R1.
Metrofile was established in 1983, and claims to be the first company in SA to offer off-site document storage.
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