JSE-listed Y3K is selling four of its business divisions after the group`s new management realised that the original strategy was not working.
The four divisions, Smarttrack Systems, AMJ Business Solutions, Cyberknowledge Systems and Y3K.Ice, will be sold to the original vendors, leaving the group with Micro-Angelo, GAS Software and Rapid Blue.
CE Sonny Fisher says the original concept at listing of developing and combining the original six component companies under one group has not met expectations and Y3K has undertaken a restructuring process.
"The new management, which took over at the end of 1999, has therefore decided to adopt a far more focused approach, concentrating on those of the existing business which logically combine to provide a packaged product to a niche high-growth market sector in which we are already a leader."
The group is to transform the listed IT exponent into a focused provider of online trading solutions to traditional retailers and Internet-based virtual stores as well as business-to-business e-commerce trading.
"We have already consolidated our focus by locating all three businesses under one roof, facilitating better service, operational synergy and a unified marketing approach," says Fisher.
The various sales will generate a total of about R6.5 million in cash over varying periods during this year and next year.
Y3K`s share price has fallen from a high of 140c on 23 February last year to a 16c close on Monday. It was untraded by mid-morning on Tuesday.
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