JSE-listed Labat has renewed its cautionary announcement, saying it is still in negotiations.
While no details were announced in a note to shareholders yesterday, the company advised shareholders to continue being cautious when trading shares.
Labat, which has management consulting, traffic solutions and micro electronic chip manufacturing divisions, originally issued a cautionary on 24 November.
It previously stated its intention to list its Traffic Solutions subsidiary independently in order to achieve value from buying out minorities.
Labat also plans to introduce a "strategic" 25% black economic empowerment shareholding.
The company aimed to acquire minority interests and then list Labat Traffic Solutions (LTS), in accordance with its "intention to extract maximum shareholder value".
Last year, it concluded agreements to acquire the minority interests in LTS and Traffic Computer Services, which is a subsidiary of LTS.
The company is contracted to supply electronic traffic enforcement solutions to four of the six metropolitan municipalities in SA, in addition to seven other municipalities.
Labat's share closed down at 21c yesterday after remaining unchanged for some time at 22c.
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