Durban-based prepaid metering and manufacturing company Conlog has lifted its cautionary announcement relating to talks with French company Schneider Electric Group.
The cautionary notice was related to negotiations with Schneider about "the involvement of Conlog Holdings from an empowerment perspective", the company says.
Acting CEO Allan Pheiffer says the company will now focus on the proposed sale of 100% of the Conlog business to Schneider as a going concern.
The Conlog business consists of the design, manufacture and sale of pre-payment electricity, water and solar metering revenue management systems as well as contract manufacturing.
Conlog Holdings announced the sale to Schneider in May, with a transaction price of R88 million.
The R88 million price tag consists of R55 million for intangibles and R33 million for the expected tangible net assets of the Conlog business on the date of the fulfilment of the conditions.
Later that month Cape Empowerment Trust unconditionally acquired about 25% of listed Conlog Holdings for just more than R16.2 million in cash.
Pheiffer says the sale to Schneider is on tract and a circular to shareholders will be posted shortly. He adds that the company aims to complete the deal by the end of the month.
Further discussions with Schneider, relating to a possible empowerment participation, will be held once the current deal has been concluded.
Conlog adds that the publication of its annual financial statements has been delayed because of a hold-up in the implementation of the sale of Satellite Data Networks.
The annual report will be sent to shareholders within a fortnight, it adds.
The Conlog share was trading at 54c this morning, 1c up on Friday`s close.
Related stories:
Cape Empowerment Trust buys 25% of Conlog
Conlog business sold for R88m
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