Ethos Private Equity has notified the IST board in writing of its intention to make an offer for the technology group.
IST said earlier this month that while it had not yet received a statement of a firm intention to make an offer, Ethos had told it that it was in the process of finalising funding arrangements that could result in an offer being made at 180c a share.
If implemented, the deal will result in Ethos holding 100% of IST, which will be delisted from the JSE.
IST says it needs to have a significant black economic empowerment (BEE) shareholding for it to achieve its strategic objectives, but its existing BEE structure is due to unwind this year.
The board concluded that IST`s BEE objectives could be better achieved as a privately held company.
The group says Ethos has finalised the necessary funding arrangements and entered into a facility agreement with the senior debt provider.
IST says a document setting out the terms of the offer will be sent to shareholders within a month.
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