Micrologix to be vehicle for reverse listing

By Iain Scott, ITWeb group consulting editor

Johannesburg, 18 Jan 2002

Clearing and forwarding company Spectrum Shipping is to reverse list on the JSE via troubled hardware and software developer Micrologix.

Micrologix was recently placed in a solvent position after creditors accepted a compromise offer as part of a rescue operation orchestrated by majority shareholder Gandalf Trust.

In terms of the reverse listing, Micrologix will acquire the business of Spectrum Shipping for R6 million, to be paid through the issue of 600 million Micrologix shares at 1c each.

Micrologix will change its name to Spectrum Shipping and operate as a clearing and forwarding intermediary to local exporters and importers.

The deal will result in an increase in the number of shares in issue from 150 million to 750 million, with a combined net asset value of 2.4c per share (1 July 2001).

Pro forma earnings per ordinary share improves from a loss of 0.3c before the acquisition to a profit of 0.2 cent per share, based on the unaudited financial statements of Micrologix and Spectrum Shipping for the 12 months to December 2001.

The company has advised shareholders that its continued listing is at the discretion of the JSE and dependent on the JSE`s assessment of the suitability for listing of the assets being acquired.

The deal is also subject to shareholder and regulatory approval.

Gandalf Trust has indicated that it will waive its rights to a mandatory offer to minority shareholders.

Micrologix was part of the IT listings boom of 1998, listing as a hardware and software developer focused on the development of the Medtel software.

The company all but collapsed in financial 2000, blaming its fall on the high cost of development and exchange rates. Gandalf Trust took control of the company and restored it to solvency through the compromise offer.

The Micrologix share was unchanged at 1c this morning.