FoneWorx merger hits a snag

FoneWorx, a listed telecoms and IT solutions provider has advised that the terms of its merger agreement with Value+ Nettwork are being renegotiated.

The group announced in December that it would purchase the business of Value+ for R191.18 million, payable in FoneWorx shares priced at R2.11 per share.

Value+ would then be renamed Value+ Cluster and would become a wholly owned subsidiary of FoneWorx, while FoneWorx would undergo a name change to Value+Network.

For the financial year ended June 2012 FoneWorx generated turnover of R98.6 million, ebitda of R33.1 million and cash on hand approaching R100 million.

Based on the most recent audited financials and management accounts for V+, the group generated consolidated annual turnover of R154.4million.

Foneworx said in a statement on SENS:

“Certain aspects of the Transaction Agreement entered into between FoneWorx and the vendors of Value+ Nettwork Proprietary Limited are in the process of being renegotiated and shareholders should therefore continue to exercise caution when dealing in FoneWorx´ securities until a further announcement is made.”

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FoneWorx merger hits a snag