An­sys makes R40m of­fer to buy Prof­itek

The Star Early Edition - - COMPANIES - Sandile Mchunu

AN­SYS has made an of­fer to the share­hold­ers of Prof­itek In­dus­trial Com­mu­ni­ca­tions to ac­quire 100 per­cent of the is­sued share cap­i­tal for a cash con­sid­er­a­tion of R40 mil­lion.

An­sys will pay 30 per­cent of the amount, which is equiv­a­lent to R12m, up­front in cash. The re­main­ing 70 per­cent will be set­tled by is­su­ing An­sys or­di­nary shares.

The group said the shares would be is­sued at a price equal to the 30-day vol­ume weighted av­er­age price of the An­sys shares at the ef­fec­tive date.

“The trans­ac­tion gives An­sys the op­por­tu­nity to cre­ate a lead­ing em­pow­ered South African en­gi­neer­ing com­pany with a par­tic­u­lar fo­cus and strength in the min­ing sec­tor,” the group said.

The ac­qui­si­tion is in line with An­sys’ cor­po­rate strat­egy and it will also en­hance safety and pro­duc­tiv­ity busi­ness divi­sion in the com­pany’s pur­suit to be­come a dig­i­tal tech­nol­ogy so­lu­tions provider.

In or­der for the ac­qui­si­tion to take place, it must first pass cer­tain con­di­tions.

An­sys wants a com­ple­tion of de­tailed fi­nan­cial, tax and le­gal due dili­gence and if deemed nec­es­sary a hu­man re­sources, in­for­ma­tion tech­nol­ogy or com­mer­cial due dili­gence to the sat­is­fac­tion of An­sys.

The ac­qui­si­tion must also be ap­proved by both boards of An­sys and Prof­itek.

“All such other statu­tory and reg­u­la­tory ap­provals and re­quire­ments are com­plied with and ob­tained from the JSE, the takeover reg­u­la­tion panel and the com­pe­ti­tion au­thor­i­ties,” the group said.

The group said the net value of the as­sets at­trib­ut­able to Prof­itek was about R12.9m as at the end of Fe­bru­ary while earn­ings at­trib­ut­able to the net as­sets were R4.2m for the year.

An­sys is a hold­ing com­pany listed on the JSE’s al­ter­na­tive ex­change.

It con­sists of a port­fo­lio of tech­nol­ogy busi­nesses op­er­at­ing in the rail, min­ing and in­dus­trial, de­fence and in­for­ma­tion se­cu­rity and telecom­mu­ni­ca­tions mar­ket sec­tors, both lo­cally and in­ter­na­tion­ally.

The ac­qui­si­tion news failed to lift the share price as the com­pany’s traded more than 3per­cent lower for the bet­ter part of Fri­day. It even­tu­ally closed 6.45 per­cent lower at R1.16.In the re­cent re­sults for the year to March, the group de­liv­ered 70 per­cent in­crease in rev­enue to R806m, from R474m.

Op­er­at­ing profit in­creased by 212.4 per­cent to R100.2m, up from R32.1m, while head­line earn­ings more than dou­bled to R67.8m, in­creas­ing by 239.7 per­cent.

Head­line earn­ings per share in­creased by 202.7 per­cent from 4.86 cents a share to 14.71c. “This growth is pre­dom­i­nantly a re­sult of our strat­egy of strength­en­ing the ver­ti­cals in terms of mar­ket ac­cess and de­liv­ery ca­pa­bil­ity, both or­gan­i­cally and through his­tor­i­cal ac­qui­si­tions,” the group said.

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