Pinnacle Technology Holdings has agreed to buy another 39.2% stake in Centrafin from CGI for R11.35 million, taking its holding to 90.2%.
Centrafin provides medium-term financing solutions to entities in the commercial and public sector, which allows them to finance ICT products from Pinnacle and third parties.
Pinnacle, which already owns 51% of Centrafin, says the remaining 9.8% is owned by MD Jenny Gill, who has waived her pre-emptive right to purchase the shares.
The computer distributor bought its stake in the 2010 financial year for R8 million during the year to June. CEO Arnold Fourie previously said it will enhance sales at the rest of the group's operations.
Pinnacle wants to reengineer Centrafin's business model, but this may require additional funding, it says. It points out that “outside shareholders are unlikely to match” a cash injection.
Reconfiguring the company will enable it to realise its potential, especially as it enables sales of Pinnacle's core business lines, it says in a statement to shareholders.
Pinnacle explains it does not want to grow the business if there are external shareholders that will not share the financial burden, or the associated risks.
The listed distributor says the deal is effective from the end of last month, but is still subject to approval.
Share
