The JSE has informed LogicalOptions that it will no longer meet the criteria for a main board listing after the disposal of its assets and liabilities to Cardinalis Investments.
LogicalOptions, formerly Education Investment Corporation (Educor), also says it will change its name to LogOpt, subject to shareholder approval, as the LogicalOptions name is one of the assets being disposed of.
Cardinalis, which is controlled by funds under the management of Brait, says it has satisfactorily completed the due diligence exercise on the businesses of LogicalOptions.
The R616.7 million deal, which is still subject to certain conditions, including LogicalOptions shareholder and Competition Commission approval, will see LogicalOptions being left with a 41.33% shareholding in Paracon as its sole asset.
LogicalOptions says the Paracon shareholders` agreement contains restrictions on the disposal or unbundling of those shares including pre-emptive rights in favour of the other parties.
"LogicalOptions is currently involved in discussions with various parties with a view to resolving this situation for the benefit of LogicalOptions and Paracon shareholders," it adds.
The committee of the JSE has ruled that LogicalOptions would no longer qualify for a main board listing after the disposal and cash distribution.
"The committee has resolved that LogicalOptions has until 2 April 2001 to satisfy the criteria for a main board listing, failing which the listing of the company`s securities on the JSE will automatically be suspended," the company says.
"In order to satisfy the criteria for a main board listing, LogicalOptions would have to introduce alternative assets which would qualify for a listing in terms of the listings requirements."
The company decided to dispose of the businesses as a result of what it says are limited local acquisition opportunities as a result of changes to competition law, a low rating of the share placing constraints on the ability to conclude suitable offshore acquisitions, and shareholders pressure to distribute surplus cash.
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