4Sight investors support R16m stock repurchase

Tech company 4Sight Holdings will go on with buying back a fifth of its issued equity to boost investor interest and improve its share price performance.

On Thursday, the company received final approval from shareholders to conclude the repurchase that will see just more than 125.5-million shares, or 19% of total equity, taken out of circulation.

The company will fund the R16m repurchase with cash reserves.

4Sight is a little-traded stock, and management expects the move will help it achieve a R1bn valuation that would put it in contention for a listing on the JSE’s main board.

The shares, valued at 25c, were untraded on Thursday.

The company, which has undergone a transformation in the past three years after a fallout with previous management, is listed on the JSE’s AltX exchange.

CEO Tertius Zitzke said that the repurchase was undertaken because “the company’s shares were highly undervalued in relation to its stated net asset value per share.

“We are confident that the share repurchase and subsequent adjustment in available shares will have a positive impact on the company’s earnings per share and unlock value for our shareholders,” said Zitzke said.

The special resolution required for the buyback was approved by 99.98% of shareholders at a general meeting at the Mauritius-based group’s offices in Johannesburg on Thursday.