JSE-listed Dectronic has reached separate agreements to dispose of 51% of its shareholding in Serec Radio and its entire stake in Dectronic Products, in line with its restructuring process.
As a result of the deals, three directors have resigned from the board, leaving non-executive chairman BH De Klerk, CEO RM de Klerk, executive director MJ Mocke and non-executive director SA Bekker.
The company has sold its Serec Radio stake to Serec director Dan Salmon for R1.3 million and Dectronic Products to Unipower for R2.8 million, payable to Dectronic`s 49%-owned associate company, Power Electronics.
Dectronic says in terms of the Companies Act, the surrender of shares in connection with the deal is classified as a repurchase of shares, for which shareholder approval will be sought.
Dectronic says it has become increasingly evident that the trading subsidiaries forming the group are "not well positioned to continue trading synergistically and hence the group`s ability to add value from the centre is limited".
However, it adds that each individual business does have the potential to create value.
"The board has thus decided to embark on a restructure programme that would best accommodate its shareholders and enable Dectronic to exploit the full potential of its JSE listing."
The process began in March, with the disposal of PDM Solutions for R2.2 million.
The group reported headline earnings per share of 4.2c for the year to 31 August 1999, which was short of the 6c prospectus forecast.
Dectronic`s share price was unchanged at 12c late on Thursday morning.
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