Usko buys Fintech`s IT assets for R523.3m

By Staff Writer for Bytes Technology Group
Johannesburg, 14 Dec 2000

Altron is to reshuffle its assets in Fintech and Usko, positioning Fintech as its financial arm, and housing its IT interests in Usko.

Under the transaction, Usko will purchase from FintechXerox South Africa, National Data Systems (NDS), Spicer Desktop and Alcatel Business Systems (ABS). These will be added to Usko`s existing operations, including networking, software and its e-commerce operation Mediswitch, along with the UK-based Microsoft licensing management company, Bytes.

Usko is also to be renamed the Bytes Technology Group. Fintech will be left with its financial services division, Technologies Acceptances.

The deal will be worth R523.3 million, settled by the issue of 2.467 billion shares in Usko at 20c each and R30 million in cash. The deal will leave Fintech holding 70.5% of Usko, which will then be unbundled to major shareholder Altron, which in turn will then hold 53.7% of Usko. Altron will continue to hold 63.6% of Fintech.

The deal will be effective from 28 February 2001, subject to certain regulatory approvals and the waiver by shareholders of a mandatory offer to Usko minorities.

Explaining the rationale for the deal, Altron says it is in line with an announcement in July that it was restructuring operations throughout the group, including streamlining Fintech into a focused financial services company.

Usko says the acquisitions are complementary to its existing IT offerings and "will enable Usko to deliver a more comprehensive range of IT services and solutions to its customers". It also believes it can benefit from cross-selling to the clients of Xerox, ABS and NDS. There are also synergies, it believes, in combining certain businesses within Usko with Spicer Desktop.

"This deal presents Usko with significant potential to offer more comprehensive services to customers on a turnkey basis," says Usko.

The company says the financial impact of the transaction, were it in effect at 29 February this year, would have been to change the headline loss per share from 15.4c, to a profit of 0.5c, while net asset value per share would have increased from a negative 8.8c, to a positive 15c.