JSE-listed holding company Wooltru has announced an agreement in principle has been reached to dispose of its 47.4% holding in retail IT solutions company Affinity Logic to management.
The company began in 1998 as a joint venture between Wooltru and fellow listed company Datatec, which also holds 47.5% in Affinity. Its original aim was to migrate various companies within the Wooltru group to a more technically competitive service platform.
However, the company now derives 20% of its total revenue from non-Wooltru business and recently launched an e-services division, Trade Logic Services, which it has positioned to complete its e-business offerings.
Wooltru places the temporary value of the deal at an initial R45 million in cash with a further R5 million to be paid by June 2002, dependant on Affinity`s turnover for the financial year to March 2002.
Wooltru says Datatec supports the sale to Affinity management. However, David Pfaff, Datatec executive director, says the deal is not final and he can`t give the market more specific information until the deal has been finalised and the exact value and details are agreed upon.
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