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Etion concludes sale of subsidiary to Reunert

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 04 Oct 2022

JSE-listed technology group Etion has concluded the sale of its subsidiary Etion Create to Reunert Applied Electronics for R202 million.

The company announced the sale of Etion Create yesterday, advising shareholders the conditions of the deal had been met and the disposal of the subsidiary was implemented on 3 October.

“The purchase consideration of R201 910 313.80 was received by the company on 3 October 2022,” reads the company’s advisory to shareholders.

Etion Create is an original design manufacturing firm that specialises in the design, manufacturing, integration and support of advanced technology.

The disposal of Etion Create was first announced in June, and was further regularised in August, wherein shareholders were advised that Etion had entered into an agreement with Reunert, in terms of which Reunert would acquire 100% of the issued share capital of the subsidiary.

The Centurion-based Etion, which has a footprint in digital and cyber security services, embarked on a disposal of assets process last year.

Since then, Etion has offloaded some of its companies, including LawTrust, Etion Connect, Etion Create and Parsec Properties.

LawTrust was acquired by Altron. The company then sold its shares in wholly-owned subsidiary Parsec Properties, while Etion Telecommunications acquired Etion Connect on 7 September for R71.5 million.

Etion has been undergoing restructuring, including a change in leadership after the departure of then CEO Teddy Daka, who is now non-executive chairman of the company.

Elvin de Kock was then appointed CEO of the technology group but resigned three months into the job due to ill health.

The company then named Richard Willis, a non-executive director, as acting group CEO with effect from 1 June, saying he will “oversee the completion of the disposal process”.

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