Black-owned Utho Technologies (Utho Tech) has ended up with an indirect 56.4% stake in Square One Solutions as a result of two separate but related deals.
The first deal involves Square One buying the Utho Tech business as a going concern for R4.9 million, payable by the issue of seven million Square One shares at 70c each.
The second deal sees GAC Investment Holdings, The James Trust and the Jartay Trust, represented by Square One directors Garth Coetser and William James, selling about 9.36 million Square One shares worth R6.5 million to a wholly owned subsidiary of Utho Tech.
The acquisition and share sale will see Utho Tech indirectly holding 56.4% of Square One's increased share capital.
In terms of the securities regulation code, this would trigger a mandatory offer by Utho Tech to all minority shareholders unless a waiver is obtained from those minorities. The group is holding a meeting to vote on a resolution to waive the requirement.
Utho Tech is a subsidiary of Utho Investment Holding, which has interests in IT and corporate advisory services.
Established in 1997, Utho Tech is involved in application systems integration, software development, Internet service provision, network design and installation and IT consulting.
"Square One has for some time been attempting to find an appropriate black partner that can assist in appropriately positioning the company to take advantage of the significant business opportunities that are afforded to empowered companies in, inter alia, the national and provincial government and municipal markets," Square One says in a notice to shareholders.
"The acquisition and the share sale will enable Square One to more aggressively pursue opportunities in these markets."
Share
