Zaptronix gets green light

By Iain Scott, ITWeb group consulting editor

Johannesburg, 07 Sept 2005

Zaptronix shareholders have voted unanimously in favour of the acquisition of DuO Solutions Provider and the consolidation of Zaptronix`s shares.

The share consolidation, on a 1:2 basis, is to take place on 19 September, after shareholders voted unanimously for the deal at a special general meeting yesterday.

The deal has been some time in the making. Zaptronix first disclosed in July last year that it was acquiring DuO in a deal valued at about R3.07 million.

It said at the time that the share consolidation would result in a reduction of the issued share capital from 144.8 million shares to 72.4 million shares.

After this, the authorised shares would be increased to 500 million shares while the issued shares would increase to about 379.3 million.

Of these, Zaptronix would issue 306.9 million shares, representing 81% of its shares in issue, to the shareholders of DuO in a ratio of one consolidated Zaptronix share to every DuO share held - essentially amounting to a reverse takeover.

Gandalf Trust took control of Zaptronix in 2003 for 0.5c a share with the aim of steering the troubled company to a complete refocus. Before then, Zaptronix had been talking about selling its businesses and delisting from the JSE.

Gandalf co-founder Jan Nel was appointed CEO of Zaptronix in January.

The share, which closed unchanged at 21c yesterday, was still unchanged by midmorning today, after 38 800 shares changed hands in three deals.