Poynting is set to sell several of its assets, valued at around R30 million, including much of its antennas unit.
The company has entered into a deal with its CEO, Andries Fourie, and the trustees of his trust, to sell Poynting Antennas - apart from certain profitable units - as well as Poynting Direct, Poynting Hong Kong and a minority interest in CrunchYard.
The entities will be sold to a new company controlled by Fourie, who is stepping down as CEO and will be replaced by Juergen Dresel on an interim basis. Dresel co-founded the company and currently serves as MD of Poynting Antennas.
Poynting explains in a note to shareholders that it has decided to sell or the close loss-making units as these losses are too big in comparison to its profitable segments, and it would "take significant time and further investment to make these businesses profitable and it is uncertain how long it will take for these units to become significant profit contributors to the group".
The listed company adds Fourie's offer to buy the loss-making units will benefit all shareholders and improve its prospects.
Poynting currently has several businesses through its African Communications (Aucom) and Poynting Antennas subsidiaries. These include entities such as its digital television unit, its Poynting Defence & Specialised unit as well as Poynting Commercial Cellular End User Antennas, Cellular Coverage Solutions and its new product and business development offering, Skunkworks.
The company will sell off its commercial antenna business, as well as its small base station entity, Skunkworks, Poynting Direct and Poynting Hong Kong. It will also sell its minority stake in CrunchYard, a small start-up that offers an engineering simulation service over the Internet on a pay-per-use basis.
As part of the deal, Fourie will create a new company that will receive some 14 million shares in Poynting held by the trust. Poynting will transfer its profitable antenna units to its Poynting Inventions unit after swapping shares.
The new company will take over loans and claims against the units it buys for R35.8 million, which will be dealt with as a loan.
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