This comes after Gijima completed a 100 million rand rights offer which was underwritten by the Guma Group of Companies, in December 2014. A member of the Guma Group, invested its own funds in underwriting the rights offer.
“The recent rights offer resulted in the Guma Group’s interest in the issued shares of Gijima increasing to 88.4 per cent leaving the company with a small remaining free float of 11.6 per cent,” the report said.
(READ MORE: Gijima continues downward spiral)
The Guma Group has full intention to buy the remaining shares in [DATA GIJ:Gijima] that they do not own. After gaining shareholder and regulatory approvals for the buy-out, Gijima plans to delist from the JSE.
“Delisting from the JSE is in line with our accelerated turnaround strategy, and will enable our plans to continue to reduce costs and improve efficiency, and increase our growth and revenue generation capability as Gijima continues to progress towards sustained profitability,” said CEO Eileen Wilton in a statement.
Guma says the plan to make Gijima private will allow management to speed up the company’s turnaround as well as for the company to explore news growth opportunities.
Once the buy-out has been given the greenlight, it is said to be an important milestone for transformation in the South African ICT sector.
Subsequent to the rights offer and the buy-out of minorities, Gijima is said to be the single largest-black-owned ICT Company in the country.
The delisting is expected to be effective from May.