Technology company Etion has become the latest firm to announce plans to delist from JSE.
Etion, which is pitching the delisting as part of a plan to unlock shareholder value, will offer shareholders 55.58c/share as part of the delisting scheme. The shares closed on Monday at 53c.
The move comes after Etion offloaded various operating businesses, including Lawtrust and Etion Connect, as part of a “strategic plan to unlock shareholder value”. The company said in September that it would distribute the net proceeds of those sales to shareholders “in the most efficient manner”.
Following the delisting, Etion will make payment of “agterskot” (earn-out) amounts. The business will then be deregistered and wound up. The agterskot payments total a maximum aggregate amount of R17-million, less any tax payable by the company.
Etion has constituted the independent board for purposes of the proposed scheme, which in turn has appointed Questco as an independent expert to prepare a “fair and reasonable opinion” for shareholders.
This opinion, and the independent board’s recommendation to shareholders, will be set out in a circular, as required under the Companies Act and company regulations. This circular is expected to be published on 2 December, with a general meeting of shareholders to follow on 4 January.
Read: Altron to acquire Lawtrust from Etion for R245-million
Should the scheme be approved by shareholders, Etion’s shares will be terminated from the AltX board of the JSE.
PSG Capital is advising Etion on the scheme. – © 2022 NewsCentral Media