Cognition Holdings has announced that it is selling its 50.01% stake in Private Property for R150 million.
The shares will be sold to BetterHome, ooba, and Fledge Capital in a single indivisible transaction.
Cognition said it entered into separate agreements with the three companies on 12 August.
According to Cognition, its business was subjected to “a vigorous reassessment” after the management team restructuring at the end of December 2021.
The company stated that its existing businesses of FoneWorx and BMI have already been refocused.
Cognition said Private Property wants to invest in future growth, which will require “considerable” technology and marketing resources.
For these reasons, Cognition felt that Private Property would benefit from industry shareholders supporting its growth imperative rather than focusing on short-term returns.
“In the circumstances, the offer to acquire Cognition’s shareholding in Private Property represents an opportunity for the company to return significant value to shareholders,” it stated.
ALSO READ: JSE resumes trade after experiencing connection glitches.
The deal is conditional on the buyers delivering proof of funds by 16 September 2022, and Cognition shareholder approval.
Cognition first bought its 50.01% stake in Private Property in 2018 for R127 million, valuing the business at R254 million. At the time, Cognition said Private Property’s net asset value was R32,366,557.
Its proposed sale to BetterHome, ooba, and Fledge Capital values Private Property at just under R300 million.
In a statement to the JSE news service on Friday, Cognition said Private Property’s net asset value was R49.6 million.
Source: News 24
