JSE-listed IT company Faritec says it has received all the approvals it needs to issue shares to Shoden.
The company says the competition authorities have given unconditional approval for the issue of shares.
The issue, which will see Shoden take a majority stake in Faritec, is part of the listed company`s recapitalisation plan. The company has also issued shares on the open market to raise funds.
Faritec received an investment from Shoden Data Solutions of R29 million in return for the majority stake in the business. Shoden`s primary expertise is in storage solutions.
The company offered shareholders the option of taking up more Faritec shares. Of the shares issued, shareholders took up 48.32%. The offer was fully underwritten, and the unnamed companies that underwrote the deal have taken up the balance of the shares issued.
Shareholders were offered 258.2 shares for every 100 shares they own, at 3c a share. The rights offer is set to raise about R20 million after costs of about R1.26 million.
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