Shareholders in Durban-based prepaid metering and manufacturing company Conlog have voted unanimously in favour of selling the Conlog business to Merlin Gerin, a subsidiary of French group Schneider Electric Industries.
Some disgruntled shareholders at the meeting on Wednesday also demanded their money, while others wanted shareholder representation on the Conlog board, says acting CEO Allan Pheiffer.
Pheiffer says it was agreed to take these issues to the board for discussion.
If they are not resolved, they will be placed on the agenda for the annual general meeting scheduled for 15 September.
The shareholder dissatisfaction arose out of the acquisition of 25% of Conlog by Cape Empowerment Trust (CET) in May.
Early that month, Conlog said it would dispose of its operating business to Merlin Gerin for R88 million to eliminate debt.
Conlog Holdings would then be a cash shell for distribution to shareholders.
CET said a week later that it acquired 25% of Conlog for just more than R16.2 million, and the deal allowed it to appoint three directors to the board, including the chairman and CEO.
Until recently, the Conlog board was in talks with Schneider relating to the involvement of Conlog Holdings from an empowerment perspective. However, the talks were postponed as Conlog wanted to focus on the sale.
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Conlog lifts cautionary, focuses on Schneider deal
Cape Empowerment Trust buys 25% of Conlog
Conlog business sold for R88m
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