Technology firm Etion has set in motion plans to delist from the Johannesburg Stock Exchange (JSE).
In a statement today, the company says it is looking to unlock shareholder value by selling off its operating entities, and would distribute the net proceeds received to shareholders in the most efficient manner.
“The strategy of the company’s board, as adopted in 2020, was to unlock value for shareholders by selling off the operating entities of the company as the market capitalisation of the Etion Group, at the time, was trading at a significant discount to the underlying intrinsic value of the operating entities when viewed as a whole,” says the firm.
Etion is proposing that after delisting from the local bourse, shareholders will receive the cash scheme consideration of 55.58c per scheme share repurchased from the relevant scheme participant by the firm.
“The Etion board, including the independent board, believe the scheme is in the best interest of shareholders and should unlock significant value, as the total anticipated value of 55.58c per scheme share, being an aggregate scheme consideration of approximately R313 717 359.”
Should the scheme be implemented, the listing of the Etion shares on the AltX Board of the JSE will subsequently be terminated.
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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