A 26.2% stake in JSE-listed Square One Solutions has been sold to black-owned Proudafrique Trading 66, a company created specifically for the deal.
Square One is a provider of solutions for, among others, document and information sharing, Internet technology, e-commerce, data storage, biometric IT solutions and uninterruptible power supplies.
The 6.22 million Square One shares acquired by Proudafrique were held by GAC Investment Holdings, The Jartay Trust and The James Trust.
While the value of the deal has not been announced, at Friday's closing share price of 76c, the stake is currently worth about R4.73 million.
Square One, listed in the JSE's Software & Computer Services sector, says the deal will result in several benefits.
These include more involved strategic and operational input on business and ICT trends generally, support in building strategic relationships with top-tier clients, and compliance with minimum black economic empowerment requirements, which allows the group to compete for state and parastatal business.
A separate deal sees Utho Investment Holding, a 100% black-owned diversified investment holding company, acquire about 1.43 million new Square One shares at 70c a share.
The issue of shares for cash, which is subject to shareholder approval, will result in Utho holding 5.7% of the enlarged issued share capital.
Square One says Utho representatives have been involved with the group since 2002, and the deal represents the culmination of that relationship.
"Utho will continue to assist with the growth of Square One in the areas of strategy, finance and operations," it adds.
Square One is due to publish its latest full-year financial results before the end of next month. For the year to December 2004, the group reported attributable income of R0.56 million on turnover of R144.34 million.
For the half-year to June 2005, it achieved attributable income of R0.63 million on turnover of R95.91 million.
Share
