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The disposals are effective from April 30 2010 and are not subject to any conditions precedent.
Onelogix said it is not well placed to continue to grow its operations that distribute newspapers and magazines and the disposal is opportune as an exit from the major part of these operations. The disposal allows Onelogix management to focus more on the larger businesses within the company.
The proceeds of the disposal, after funding the acquisition and share repurchase referred to below, will reduce gearing pending evaluation of acquisition opportunities, it said.
Onelogix also announced that it has acquired an additional 20% shareholding in Magscene for R1.5m. Magscene is an importer and distributor of international magazines. Onelogix previously held 60% of the shares in Magscene.
This acquisition, which is unconditional and effective May 31, serves to simplify shareholder relationships, the company said. The financial effects of the acquisition, which are the responsibility of the directors of Onelogix, are not significant.
In addition, Onelogix has agreed to repurchase eight million shares in Onelogix from related parties, being Jeremy Eaton, MD of Press Support, and The Eaton Family Trust, for 85 cents per share plus interest at prime less 3%.
In due course, Onelogix will make a further announcement in this regard, detailing timing and process in connection with the repurchase. The financial effects of the specific repurchase, which are the responsibility of the directors of Onelogix, are not significant, it said.
Shareholders were advised they no longer need to exercise caution in dealing in Onelogix shares.
- I-Net Bridge
