Talks around the shareholding of Datacentrix are being driven by shareholder action and the company is not a party to the negotiations, it says.
Datacentrix issued a cautionary notice in early December saying "there are negotiations relating to the shareholding of the company". The cautionary has been repeated several times since then.
Speaking at yesterday`s release of the group`s financial results for the year to February, chairman Gary Morolo said he could not comment on the nature of the negotiations.
However, he told analysts that the talks, which are still under way, are not being driven by the company.
"It`s more a case of shareholder action," he said. "The company is a bystander in the issue, not really involved in the process.
"Shareholders approached the company to tell us that something was happening out there and that perhaps we should issue a cautionary."
Morolo acknowledged that the failure to obtain shareholder approval for the issue of 11 million shares for cash to selected executive directors as part of an incentive scheme originally approved by the board in 2001, was related to the talks.
According to the commentary appended to the company`s latest financials, "Given the ongoing negotiations regarding the shareholding of the company, certain key shareholders decided not to vote in favour of the issue of these shares, and agreed in principle to compensate the directors concerned with cash bonuses in lieu of the share options."
Said Morolo: "These shareholders said they couldn`t support the share options and urged the board to look at cash alternatives." The main concern was the dilutive effect the issue of the shares would have on other shareholders.
Morolo would not comment when asked after the results presentation whether 40% shareholder Aka Capital was looking to reduce or sell its stake.
"It`s a question I get asked a lot," he said. "Obviously I can`t comment on the cautionary.
"But perhaps it should be put out there that Aka is an investor like all other shareholders, and that at some point it will be looking to exit."
Datacentrix management and staff hold 22% of the group, while the remaining 38% is owned by financial institutions and the public.
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