MB Tech, a wholly-owned subsidiary of MB Technologies, has made an offer to acquire the entire issued ordinary share capital of SecureData for an amount of about R86,3-million.
The deal would involve MB Tech buying 227 128 521 SecureData shares by way of a scheme of arrangement.
SecureData and MB Tech entered into a written implementation agreement on 19 November 2013 in relation to the Offer, which contains provisions relating to the implementation of the Offer and certain undertakings given by SecureData. This includes undertakings regarding the conduct of the SecureData business in the period between the signature of the implementation agreement and implementation of the scheme.
If the scheme is implemented, MB Tech would pay 38 cents in cash for each SecureData share.
The implementation of the proposed transaction, which will add significantly to the products, services, client base and skills set within the combined businesses, is expected to build scale to both businesses which would benefit from synergies and cost savings resulting in a more efficient organisation with increased diversification.
In addition, MB Tech firmly believes that opportunities exist to cross-sell products and services to the respective companies’ client base, and to provide improved services to mutual clients.
So far, irrevocable undertakings to vote in favour of the scheme and any other resolutions to be have been received from 80,6% of SecureData shareholders.
Following the implementation of the Scheme, application will be made to the JSE to terminate the listing of the SecureData Shares on the JSE.
