Y2Ktec has announced its intention to acquire the entire issued share capital of Coetser Craddock International (CCI), a professional advisory services provider to the small and medium enterprise (SME) business sector, for R4.5 million. This amount will be payable by the issue of 225 million new ordinary shares in Y2ktec at an issue price of 2c per share.
The announcement comes after the cancellation of an earlier decision to dispose of its sole operating subsidiary to Nomalanga Trading Enterprises for R500 000 cash. Y2Ktec, which has been fraught with operating difficulties for more than a year, announced its intention to become a cash company in June 2001.
The acquisition is warranted on an after-tax earn out (R1.5 million) for CCI in its first year of operations after the acquisition. The directorate of Y2Ktec has been reshuffled, and the company will be renamed following the reverse listing of CCI.
CCI hopes to become a significant supplier of professional business advisory services to the SME market. The merged entity will focus on this business directive in the year to come.
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