Industrial technology group Set Point Technology Holdings (Sethold) yesterday told shareholders it may be bought out, sending its shares rocketing.
The company, which supplies technology to the manufacturing and mining sectors, told shareholders it had received expressions of interest from various parties.
Sethold received offers to acquire certain of its divisions, a material shareholding, or the entire issued shares.
"The board is considering the documentation, but is not yet in a position to decline to engage in a process with the parties, or alternatively to make any positive recommendation to shareholders," said the company in a note.
"However, shareholders are advised the expectations of interest represent premiums to the current prices at which Sethold`s shares are trading on the JSE."
Sethold`s shares surged on the news, gaining almost 26% to trade at 68c as almost four million shares changed hands before 12.30pm yesterday. The company`s shares closed at 69c, after reaching an intra-day high of 70c. On Tuesday, the company`s shares closed at 54c.
Upbeat forecast
Sethold, which listed on the Johannesburg-based bourse in 1997, was - at that time - the only specialised industrial, analytical and allied technologies group listed.
For the year to end August, the company reported revenue of R315.7 million and a loss before tax of R8.3 million, which translates into a loss after tax of R13.6 million.
However, it expected an improved picture in the next financial year. The previous year was marked by irregularities uncovered at subsidiary Seran.
In its financial results to end-August, it predicted a slow first half but a strong performance for the full year. "The setback at Seran has been unfortunate but has not changed the group`s strategy," it noted.
"Future growth will be achieved organically, and acquisitions will be considered again once Seran, like all of the group`s other businesses, is profitable and cash flow positive."
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