BRAINWORKS FOUNDERS EXIT GROUP:
BRAINWORKS Capital founders George Manyere and Walter Kambwanji have sold their shareholding in the Johannesburg Stock Exchange listed company and have now acquired the company’s investment in Getbucks.
According to an announcement from Brainworks, the company together with GetSure Life Assurance entered into transactions with the two non-executive directors — through their respective investment vehicles — for the disposal of 163 769 298 shares constituting 14,98 percent of GetBucks.
This comes after the two agreed to dispose of their Brainworks shares to the benefit of institutional investors who were yet to receive their shares following a placement in October.
Brainworks placed 9 088 677 of its treasury shares with various institutional investors in Zimbabwe in October subject to receipt of approval by the Reserve Bank of Zimbabwe.
“The necessary Reserve Bank and other approvals have not yet been obtained and accordingly Brainworks has, to date, not been able to deliver the shares subscribed for to the institutional investors. However, in order to be in a position to deliver to the said institutional investors’ shares in Brainworks, certain directors of the company have agreed to dispose of their Brainworks shares to the institutional investors,” said the group in a statement.
Brainworks CEO Bretts Child told FinX he hoped the transaction would increase the percentage shareholding held by the public and “accordingly we hope it will improve liquidity.”
He said since listing, volumes traded have been low (just over 31 000 shares), but that’s mainly because the Zimbabwean-based shareholders were unable to trade as they do not have broker accounts in South Africa.
“The shares they hold are not in dematerialised form, being the JSE preferred way to hold shares in order to facilitate trading. As such, it is difficult to trade.”
The company’s strategy is to focus on its core asset base, being hospitality, real estate and related investments.
“Accordingly, it is re-organising its investments in financial services and part of its strategy is to exit its investment in GetBucks.”
The group said the funds raised pursuant to the transaction will be applied towards the restructuring of the balance sheet in order to position it for growth going forward. — Wires.