JSE-listed outsourcing specialist, the Dialogue Group, has sold its 51% stake in disaster recovery firm ContinuitySA for R35m.
CoroCapital, the investment banking firm and subsidiary of Coronation, will take a 49% stake. ContinuitySA staff and management have acquired the other 2%.
The deal is still subject to several conditions, including a due diligence investigation and approval from the JSE.
Dialogue has faced difficult times in recent months, including the voluntary liquidation of its primary subsidiary, Dialogue SA.
The group has also sold its 51% stake in call centre recruitment business Callforce.
ContinuitySA CEO Allen Smith says the company has been in discussions with CoroCapital for some time.
As part of the proposed transaction, the directors of ContinuitySA have agreed to declare a special dividend of R4m, payable to current shareholders. Of this amount, R2,04m will accrue to Dialogue based on its 51% ordinary shareholding. — Staff reporter, TechCentral
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