Mustek subsidiary Rectron has entered into an agreement to sell 100% of its stake in Rectron Australia to IG3 Education, for a total cash consideration of AUD1,059-million with effect from 1 October 2015.
The transaction is part of the group`s drive to dispose of non-performing, non-core assets and proceeds will be used to reduce the group’s debt.
There are no conditions precedent.
David Kan, CEO of Mustek, is a 38% shareholder in IG3 Research & Applications, which holds a 62,97% stake in IG3 and the transaction is therefore deemed as a small related party transaction in terms of Section 10 of the Listings Requirements of the JSE Limited and no shareholder approval is required.
The net asset value of Rectron Australia at 31 December 2015 was R14,314-million and included a deferred tax asset of R9,508-million. The net loss after tax for the six months to 31 December 2015 was R2,224-million.