JSE-Listed 4Sight Sells Underperforming Mauritius Unit For R92-m

"This strategy coupled with strong cash flow and profit growth will allow 4Sight to further entrench itself as a leading technology solution provider in a burgeoning market sector.”

4IR
Industry 4.0 double exposure concept. buffaloboy / Shutterstock.Com

JSE-listed 4Sight Holdings announced late on Tuesday that it has entered into an agreement to dispose of one of its Mauritius subsidiary, Digitata, to its original owners.

The transaction values Digitata at R91.9 million, and will be funded by the return of 290 549 558 4Sight shares by the purchasers to 4Sight.

These shares will be cancelled, thus reducing the issued share capital of 4Sight from 791 304 945 to 500 755 387 shares.

Digitata was acquired by 4Sight on 1 July 2017 ahead of the company’s listing on the Alternative Exchange of the JSE.

It operates mainly in the mobile telecommunications industry and focuses on providing Fourth Industrial Revolution (4IR) solutions across the areas of service revenue management through its Intelligent Pricing Solution, customer engagement through its gamification platform and a suite of mobile network management products.

Digitata has not operated profitably during the last 18 months and has not achieved its agreed budget targets. The company attributed this to non-cash events related to impairments as reported in the 2019 Financial Results as published on SENS on 31 March 2020.

The Digitata subsidiary was acquired by 4Sight at an acquisition cost based on its
anticipated future financial performance which has unfortunately failed to materialise.

In line with its strategic intent, 4Sight said the proposed transaction will further allow for the continued repositioning of the group as a focused multi-national, diversified technology group.

“The proposed transaction will allow 4Sight to focus its efforts on accelerating its integrated solution development for the convergence of operational technologies, information technologies and business environment solutions.”

The deal is subject to the fulfilment of several conditions.

Tertius Zitzke, CEO of 4Sight, says the transaction should be seen as part of the group’s ongoing disposal of subsidiaries that are not profitable and that are not aligned with the group’s growth strategy.

“Digitata’s business does not align with 4Sight’s new growth strategy,” he says.

“By disposing of Digitata, our new board and management team continue to implement our revised growth strategy focused on the convergence of operational technologies, information technologies and business environment solutions.

“This strategy coupled with strong cash flow and profit growth will allow 4Sight to further entrench itself as a leading technology solution provider in a burgeoning market sector.”

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