Portal operator and application service provider Metropolis has cautioned investors that it is in advanced stages of negotiation with stakeholders Primedia and Datatec, which should result in a 40c offer for Metropolis shareholders.
News of the deal released to the market after the bell yesterday afternoon had a marked impact on the Metropolis share which has been languishing under 10c for the past week. The share surged to 35c minutes after the JSE opened today, trading in heavy volume.
Metropolis management advised shareholders that should the negotiations prove successful, it could result in an offer to Metropolis shareholders of 40c per share in a combination of Primedia and Datatec shares and/or cash.
The news is pursuant to the announcement in April that Metropolis was in talks that could result in the de-listing of the counter. Last year it sold its Information Management businesses, transferred its business-to-business (B2B) communities to VerticalNet and closed its B2B division.
For the six months to December 2000, its first financial results following its exit from the B2B arena, the company posted a headline loss of 11.5c per share compared with a 19.1c loss a year earlier.
The once high-flying Internet stock led by flamboyant entrepreneur Jason Xenopoulos failed to hold investors` interest after repeatedly failing to deliver on results, which the dot-com crash did little to help.
Metropolis management has advised shareholders to exercise caution in dealings until a full announcement is made.
Related stories:
Metropolis` de-listing still on the cards
Metropolis publishes its first post-B2B results
Xenopoulos steps down as executive chairman of Metropolis
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