Misfiring SecureData offloads UK subsidiary
JSE-listed SecureData, a provider of information security and risk management products, announced on Thursday (3 May 2012) its disposal of SDH UK, an 80.8% owned subsidiary of SecureData, as part of a plan to refocus on its African operations.
The group noted that it has entered into a sale and purchase agreement with a recently-established special purpose vehicle, SDH Bidco, for GBP16.621 million – which includes an adjustment for working capital and cash.
Last month the information risk management (IRM) group reported a decline in operating profit to R6.109 million for the six months ended January 2012, from R9.093 million before.
“Overall, the group did not deliver on expectation. The board made a decision to turn all its focus and attention on its African operations,” SecureData said in a statement.
SDH UK was originally established in 2008 as the special purpose vehicle subsidiary of SecureData through which the company, together with a number of leading management, acquired 100% of the issued share capital of SecureData Europe for GBP13.4 million.
SecureData said that the company’s then-strategy to become a meaningful provider of information risk management solutions and products within Europe, the Middle East and Africa, was approved by the board on the premise that, despite the relocation of the former CEO of the Company to the UK, its African operations, through SecureData Africa, would remain management’s primary focus.
“However, notwithstanding SecureData Europe’s noteworthy performance over the past four years, a lack of focus on SecureData Africa has resulted in a significant reduction in profitability for the group,” it said.
“Consequently, SecureData’s share price has declined to a value significantly lower than the intrinsic value of its underlying operations and as a result, the Board has resolved to dispose of SDH UK, and to once again focus on its African operations,” the group concluded on Thursday.
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