Simeka scraps merger plans
Information and communication technology (ICT) company Simeka BSG has terminated its plans to merge with Sahara Holdings, a computer hardware reseller, it said on Friday.
The company said in a statement that it was a mutual decision to cancel the R867-million agreement, which was announced on Monday.
“The parties have committed to identifying opportunities to work together in the future, with a view to taking advantage of the synergies between their businesses,” Simeka stated.
This deal would effectively have tripled the size of Simeka to more than R1,5-billion in revenue and its market capitalisation to around R1,5-billion.
The proposed merger with Sahara, a computer hardware reseller, was announced hot on the heels of the purchase of smart card packaging and personalisation specialist Premium Ideas for R135,2-million.