JSE-listed Pinnacle Technology Holdings has sold 20% of its shares to Amabubesi in a black economic empowerment (BEE) deal worth R37.18 million.
Amabubesi is headed by chairman Bulelani Ngcuka (former National Prosecuting Authority head), CEO Sango Ntsaluba, and directors Thabiso Tlelai, Peter Moyo and others.
Pinnacle has announced that Amabubesi is to acquire 37 281 647 Pinnacle shares at 100c a share, and is to undertake not to sell any shares in the company for four years, other than up to half of its shareholding to another BEE company as approved by Pinnacle.
The deal is being funded through an Old Mutual Life Assurance Company investment fund managed by Amabubesi.
Pinnacle says talks between the two companies began in June after Pinnacle`s share price dropped below 80c a share. Yesterday the share closed at 145c, unchanged from Friday.
Amabubesi invests mainly in the tourism and leisure, transport and logistics, technology, healthcare and property sectors, with investments in, among others, Growth Point, Consolidated African Technologies, Stallion Holdings, Basil Read Holdings, Bayview Hospital and Communicom Technologies.
Pinnacle says that if the need arises to issue additional shares for cash in the five years from 1 July 2005, Amabubesi will have the right of first refusal to increase its shareholding through such an issue.
However, the BEE partner may buy the shares up to the point where it holds a 34.9% stake in Pinnacle.
The company also has the right to appoint two non-executive directors to the Pinnacle board.
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