The MGX Holdings board says talks are under way to dispose of two of its operations, involve a black economic empowerment partner in two other operations and refinance the restructured group.
The moves form part of a strategic review process initiated in November last year, when interim CEO Peter Flack was tasked with turning around the troubled group.
MGX says it is in talks to sell off two of its operations - Business Continuity Solutions and Enterprise Solutions - to their respective management teams. In both cases, the deals are supported by credible black empowerment partners. More details will be made public once the deals have been concluded.
This follows an earlier statement that the board had decided to dispose of certain operations to reduce the group`s debt level and to restructure the company as a smaller, but sustainable and profitable business.
In an update on its strategic review, the board says agreement in principle has also been reached with a prospective black economic empowerment partner regarding its participation in Metrofile and Software Futures.
At the same time, the group says satisfactory progress has been made in discussions with a consortium of banks regarding the refinancing of the restructured group.
It says its financial management function has been strengthened and that the board`s audit committee is reviewing the interim results for the six months to 31 December 2002 in this context.
The group intends to publish these results in the second half of April. In terms of JSE regulations, the results were due to be released by the end of this month.
By 10.30am today MGX`s share was trading at 75c, 5c or 7.14% up on yesterday`s close.
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