Paracon has extended its option to acquire the business of Tee Que Trading Services.
The original option to buy the Gauteng-based IT contracting and services business lapsed yesterday.
Paracon announced in June that it had acquired Time Quantum Consulting`s Cape Town-based IT contracting and services business for R11.1 million and that it had been granted an exclusive option, exercisable on or before 30 November, to buy the Tee Que Trading Services business.
The Gauteng business carries a R34.5 million price tag.
The option was entered into because certain undisclosed criteria needed to be satisfied before the option was exercised.
Paracon says Tee Que was "unable to resolve certain issues satisfactorily and Paracon has therefore not exercised its option".
The company says it has reached an agreement with the sellers of Tee Que to extend the option period to 31 March and to recognise growth in the business during the extension period.
Paracon CEO Mark Jurgens mentioned at last month`s release of the group`s full-year results that Paracon was in talks to extend the option period as there were "some issues" at Tee Que that needed to be resolved.
However, he would not elaborate.
The Paracon share was trading at 85c on the JSE this morning, down 1c or 1.2% down on yesterday`s close.
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