Embattled IT group MGX is to sell its Midrand property to C-Max for R35 million.
C-Max, a subsidiary of Zenprop Property Holdings, will pay MGX on the effective date of the deal, which will be once the transfer of ownership has been registered, expected to be on 31 August.
The sale of the property has been expected since last November, when the group admitted it almost collapsed as a result of a high debt burden, deteriorating trading performance and legal disputes.
Saved by a consortium of its financiers, it said it would secure its future by restructuring, disposing of several businesses, selling the Midrand property and delisting from the JSE.
According to its recovery plan, the Metrofile subsidiary will be MGX`s only operating asset after the restructuring. MGX plans to change its name to Metrofile as a result.
A statement from MGX indicates that the proceeds of the property disposal will be used to reduce interest-bearing liabilities and obligations.
It says it has obtained irrevocable undertakings from the requisite majority of independent shareholders to ratify the disposal.
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