JSE-listed technology group Etion is in negotiations with an unnamed party to dispose of “one or all of its subsidiaries”, the company notified shareholders yesterday evening.
The Centurion-based group, which has a footprint in digital and cyber security services, targets governments, banks, businesses and insurance companies.
Yesterday, it announced “the company has entered into negotiations to dispose of one or all of its subsidiaries, which, if successfully concluded, may have a material effect on the price of the company’s securities”.
The announcement is on the back of the recent disposal of its digital signatures services company Lawtrust, to JSE-listed Altron for R245 million.
Lawtrust is a digital trust services and cyber information security solutions firm, which provides solutions used to verify the authenticity of digital identities and counterparty systems in transactions, data encryption, digital signatures, as well as biometrics.
The Altron takeover of the company was subsequently approved by the anti-trust authority, the Competition Commission, six months ago.
Etion now has three operating businesses: Etion Connect, Etion Create and Etion Secure.
The firm has been undergoing restructuring, which includes a change in leadership after the departure of then CEO Teddy Daka. He is now non-executive chairman.
Elvin de Kock was then appointed CEO of the technology group but resigned three months into the job due to ill health.
Etion then named Richard Willis, a non-executive director, as acting group CEO with effect from 1 June, saying he will “oversee the completion of the disposal process as detailed in the cautionary announcements dated 28 October 2020, 9 December 2020 and 25 January 2021”.
Schalk Laubscher was appointed as new production executive manager of Etion Create.
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