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4SI buys back 19% of issued shares

(From left to right) Eric van der Merwe: Financial Director, 4Sight Holdings; Andrew Murgatroyd, Non-Executive Director and Audit and Risk Committee Chairperson, 4Sight Holdings; Tertius Zitzke, Chief Executive Officer, 4Sight Holdings; and Rudi Dreyer, Chief Business Environment Officer, 4Sight Holdings.
(From left to right) Eric van der Merwe: Financial Director, 4Sight Holdings; Andrew Murgatroyd, Non-Executive Director and Audit and Risk Committee Chairperson, 4Sight Holdings; Tertius Zitzke, Chief Executive Officer, 4Sight Holdings; and Rudi Dreyer, Chief Business Environment Officer, 4Sight Holdings.

JSE-listed 4Sight Holdings Limited has announced that all resolutions required to be passed by 4Sight shareholders to approve the share repurchase were passed by the requisite majority of shareholders.

As such, the share repurchase will be implemented and the repurchase shares delisted from the JSE.

The company released a statement which detailed that 4Sight entered into the share sale and repurchase agreement to repurchase 125,521,898 ordinary shares of no par value in the Company at approximately 12.75 cents per share which represents a discount of 41.83% for a total cash consideration of R16-million. This represents 19% of the total 4Sight shares in issue at the time of purchase.

“The 4Sight board of directors determined that the Company’s shares were highly undervalued in relation to its stated net asset value per share,” explains 4Sight Holdings Limited CEO, Tertius Zitzke.

In this regard, the board determined that repurchasing shares at a material discount to the intrinsic value of 4Sight shares would uplift value for shareholders following the implementation of the share repurchase and the subsequent cancellation of the repurchased shares.

“4Sight funded the share repurchase through available cash resources, which effectively decreases cash and cash equivalents, as well as the Company’s share capital,” explains Zitzke.

A shareholder majority of 99.98% passed the requisite special resolution at the general meeting of shareholders held at the 4Sight offices on Thursday, 17 November 2022.

Following the conclusion of the share repurchase, the repurchased shares will be cancelled and the issued share capital of 4Sight will reduce by 125,521,898 shares, from 659,856,529 to 534,334,631 ordinary shares of no par value.

“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,” concludes Zitzke.

Kamil Patel, Chairperson of the 4Sight Board says, “The first three years of 4Sight, with the new EXCO and current board of directors appointed on 29 October 2019, were focused on stabilising what we have and developing skills and competencies. For the next three years we are going to focus our efforts on growing the value for shareholders and deliver our current strategy towards our customers’ digital transformation journeys.”

He continues, “We've bestowed a lot of faith in our customer base as well as our vendors who are supporting us with excellent product offerings and with our added value services delivering fourth industrial revolution solutions and building Enterprise 5.0 for our customers.”

Zitzke told ITWeb Africa the deal means more value for the remainder shareholders “as possible dividends in the future will result in more dividends per share.”

He adds: “There is no change in the current strategy of the Group. We are going forward with our business, (as reflected) in our six months half-year results announced.” 

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