Xantha Bids for Dynamic Technology in South Africa

Mergers, Acquisitions and Financial Results

Software company Dynamic Technology Holdings said yesterday it had received a R30,2m offer to buy out some of the shareholders in the group from Xantha Properties, which is controlled by some key members of the management.

The Dynamic Technology board believes the implementation of the scheme is the most efficient manner to unlock value for shareholders and the group by providing interested shareholders with the opportunity to exit their investments.

"This will afford management the opportunity and resources to focus on operational issues within an unlisted environment without the distraction of regulatory and shareholder matters," it said.

The company said the trading conditions were not favourable to small companies. "Acquisitions favourable to Dynamic Technology shareholders have been significantly affected by factors such as the persistently low market value of the company and the ongoing negative sentiment associated with small capitalisation companies in general," it said.

If the offer is approved, Xantha Properties will delist Dynamic Technology. The company employs 140 people and is an owner-managed business, with the shareholders directly involved in the business.