AltX-listed ICT solutions company Simeka Business Solutions Group has received the green light from SAB&T Ubuntu shareholders to acquire the entire business.
Simeka had previously noted its intention to invoke section 440K of the Companies Act, No 73 of 1961. This meant that, if the company got approval from 90% or more of SAB&T shareholders, it could force remaining shareholders to submit to the offer.
SAB&T shareholders met on Friday to vote on the share-swop offer valued at around R135 million. At midday, the companies revealed the offer had received approval in excess of the 90% required.
River Group, corporate advisor to the transaction, declared: "Simeka is, therefore, entitled to compulsorily acquire all remaining offer shares from those offer shareholders who have not accepted the offer, by giving notice to such shareholders in terms of section 440K (1) of the Companies Act, Act 73 of 1961. An application will be made to the JSE to terminate the listing of SAB&T once the section 440K process has been completed."
Simeka CEO Mohammed Varachia says the acquisition presents opportunities for extracting synergies and leveraging economies of scale.
"This will also enable Simeka to diversify into more broadly-focused general business support services in line with our long-term strategy to create a multi-dimensional group offering a wide range of business support services."
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