After months of speculation that MGX Holdings is eyeing an acquisition of part of CCH, the companies have released a joint cautionary warning they are in negotiation.
Industry rumours that JSE-listed data management company MGX was moving to acquire part of listed CCH intensified last month when MGX bought minority interests in EC-Hold.
EC-Hold specialises in the provision of integrated solutions and enabling technology in the secure e-business environment, information security and information management, which is a neat fit with CCH`s core e-business operations.
Analysts dismissed the initial rumours that MGX was eyeing CCH for an asset strip, saying the Rivonia-based company was more likely to acquire a part of CCH as a going concern as MGX looked to branch into new business fields.
Neither company`s share price reacted to the cautionary, with MGX trading at 1 650c and CCH at 525c.
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