Softline disposal looks certain

By Iain Scott, ITWeb group consulting editor

Johannesburg, 28 Aug 2003

The Softline share rose by 4c to close at 195c yesterday as the disposal of the group to UK-based Sage Group looks set to go ahead.

Sage plans to acquire the entire undertaking of Softline, including its shareholding in all direct subsidiaries, the shares in UK-based Integrity Software and US-based Island Pacific, all shareholder loans made to the subsidiaries by Softline or any Softline-controlled company, and all of Softline`s other assets of any kind.

Sage SA says it has also agreed to assume and discharge certain of Softline`s liabilities as they fall due.

Sage is paying R784.83 million for the acquisition, which it says will extend its geographical presence to "the attractive South African and Australian markets in which Softline is well established".

Shareholders are to receive a total of R2 a share. This will be made up of a payment out of share capital of 1c per share, out of share premium of 33.4c a share and an advance liquidation dividend of 165.6c a share.

Sage says although the disposal is in no way conditional upon a winding-up, it proposes that Softline be delisted from the JSE and wound up. No advance payment will be made to shareholders if the winding up is not approved.