ISP NetActive listed today after suspension of a planned listing in August last year. An expected quiet first day of trading was electrified with the announcement that Woolworths Holdings is to acquire a 13.5% stake in the company.
Woolworths is to purchase 6 million shares for R8 million and a further 12.5 million shares from current stakeholders. The deal is subject to shareholder approval.
Woolworths chairman Syd Muller says the deal is part of an e-commerce strategy development. "We need to take full advantage of IT and harness the power of the Internet, which will offer alternative shopping channels."
Several NetActive board members are connected to Woolworths. The executive chariman of Wooltru Limited, Colin Arthur Hall, acts as the non-executive chair, while non-executive director, Stephen Leggatt, is the executive director of Massmart, a Wooltru subsidiary. Another non-exec director, Richard van Rensburg, is the CEO of Affinity Logic.
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