New twist in FoneWorx saga

Alt-X listed telecoms and IT solutions provider, FoneWorx has on Monday (27 May) advised that its proposed transaction with Value+, a group founded by William Kirsh, has been terminated by mutual consent.

Foneworx added that all disputes between the company, Value+ and The Isaac and William Kirsh Family Trusts have been resolved.

In December 2012, Value+ Nettwork (V+) and FoneWorx announced an intention to merge.

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

The Kirsh family own approximately 75% of V+ and 32.7% of FoneWorx, being the respective companies’ largest shareholders.

However, in April the Kirsh family pointed to the poor state of corporate governance at FoneWorx, and requested an extraordinary general meeting (EGM) to remove and replace the non-executive members of the board.

The family said it would look to retain the executive directors at FoneWorx to implement a proposed merger between the two entities.

FoneWorx hit back claiming that the tactic and strategy adopted by William Kirsh had been to apply a bullying approach aimed at control and creating a board that effectively “rubber stamps” his wishes.

“His tactics, emotional outbursts and divisive approach have only resulted in alienating the FoneWorx management team. A strategy to force two parties together under these circumstances can only result in destroying value,” the group said.

On Monday (27 May), FoneWorx said that the Kirsh Family’s stake in the company comprising of 44.5 million shares of its issued share capital (32.7% of the Company) has been acquired by Caxton and CTP Printers & Publishers with effect from 30 May 2013.

The purchase price of R102.5 million is based on a per share price of FoneWorx of R2.30 per share.

Caxton is involved in publishing a number of regional community newspapers, The Citizen daily newspaper and 13 major magazines, as well as commercial printing, packaging, stationery manufacture and book printing.

More on FoneWorx

FoneWorx board hits back at Kirsh Family

FoneWorx court battle looms

FoneWorks sees revenue slip

FoneWorx in Value+ acquisition

FoneWorx completes Kirsh Family deal

FoneWorx investors approve Kirsh Family deal

FoneWorx to change direction

FoneWorx reports 14% rise in H1 revenue

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New twist in FoneWorx saga