International technology company Hitachi has acquired, subject to regulatory and shareholder approval, a 27% stake in JSE-listed e-commerce enabler Zaptronix.
Zaptronix will issue 39 001 859 ordinary shares to Hitachi at an issue price of 41c per share, raising just under R16 million.
The company says it has also split the functions of chairman and CEO.
Nicholas Adams, a former director at Delloitte & Touche Management Consultants and at Hollard Holdings, has been appointed non-executive chairman.
John Heath, who previously held both the chairman and CEO posts, will continue as chairman.
The effect of the Hitachi deal, had it taken place in the six months to 31 October last year, would have been to increase earnings per share 1.0% to 4.16c and to reduce net asset value per share, including intangibles, by 11.62% to 60.68c.
Hitachi and Zaptronix will develop a range of smart commerce solutions, including low-cost point-of-sale terminals and Internet kiosks for retail, and applications targeted at the public sector.
Zaptronix is to design devices to deliver secure content over virtually any medium, including CD, DVD, satellite, multicast, as well as interactive data networks such as the Internet.
The companies expect to deliver more than a million devices across Europe, the Middle East and Africa over the next 12 months.
"The relationship with Hitachi is part of a bigger picture for both companies," says Heath. "Zaptronix`s design and manufacturing abilities and 'first to market` approach, together with Hitachi`s complementary technologies and existing global penetration, makes for exciting prospects."
Hitachi was ranked 24th in terms of revenue in the 1999 Fortune Global 500 companies, with revenue of $65.9 billion for the year to 31 March 1999. It was also ranked the world`s third largest electronics company after General Electric and Siemens.
By late Thursday morning the Zaptronix share was trading at 38c, 13c or 52% up on Wednesday`s close of 25c.
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