ISA Holdings is in new black economic empowerment (BEE) talks, after previous negotiations failed over funding problems.
ISA, formerly Y3K Group, issued a cautionary notice late yesterday saying the aim of the new talks is for unnamed potential BEE partners to acquire up to 32.5% of the group.
This will be carried out by way of a new issue of shares for cash.
CEO Clifford Katz says the potential partners are not the same ones with which ISA was in negotiations last year.
"We were quite disappointed by the failure of our chat in August," he says. "And they were disappointed too. They couldn`t raise the funding."
ISA said in August that the then potential partners had approached the Development Bank of Southern Africa as a potential financier.
"This is a new grouping of people," Katz says of the latest talks. "The caution has been around helping them solve the funding problems we encountered in the past, and we think we have found a better way for them."
At yesterday`s closing share price of 42c, ISA has a market capitalisation of R54.6 million. At present, there are 130 million ISA shares in issue.
ISA, an information security solutions provider, reverse listed into Y3K Group last year. The share is listed on the JSE`s alternative exchange, AltX.
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