Specialised ICT recruitment company Paracon will become a wholly-owned unit of Adcorp, and its shares delisted tomorrow, as a deal announced in September is implemented.
JSE-listed recruitment company Adcorp offered R622 million to buy specialist ICT staffing solutions company Paracon, in a bid to create a R6.5 billion firm.
Adcorp, which turned over R5.4 billion in the last financial year, specialises in staffing and recruitment across a range of sectors. It also provides training and manages employee benefits and wellness.
Paracon, which reported R1 billion in revenue in its last financial year, will fill Adcorp's gap in high-level specialised ICT skills and solutions, according to a statement issued by Paracon in September.
In the middle of last month, Paracon said all outstanding conditions had been fulfilled and its shares would be suspended on 28 November. The scheme comes into effect today and its shares will be delisted tomorrow.
As a result of the completion of the transaction, several of Paracon's non-executive directors, including Dimension Data chairman Jeremy Ord, will step down from the board on Wednesday.
In a statement to shareholders on Friday, Paracon said its independent chairman, Grenville Andrews, as well as non-executive directors Zeth Malele, Thoko Mokgosi-Mwantembe, Thandi Nzimande, Carl Stein and Ord would step down.
Paracon said current CEO Mark Jurgens and FD Mireille Levenstein will remain on the unit's board, and will be joined by Adcorp CEO Richard Pike and chief risk officer Campbell Bomela.
Share