JSE-listed technology firm Cognition has entered into a share purchase agreement with CTP to acquire a 50.01% shareholding in property portal, Private Property, for R127 million.<\/p>\n
CTP is a wholly-owned subsidiary of Caxton, which is a material (34.70%) shareholder of Cognition. Both Caxton and Cognition are listed on the Main Board of the securities exchange operated by JSE.<\/p>\n
At the end of 2017, Private Property underwent a change in ownership after a consortium buyers, spearheaded by Caxton and CTP Publishers and Printers, took over the reins of the property portal from its holding company, One Africa Media \u2013 a private equity controlled company.<\/p>\n
The purchase price will be settled through the issue of 105,833,333 Cognition shares at 120 cents per share. And pursuant to the proposed acquisition, CTP will, together with Caxton, become the controlling shareholder of Cognition.<\/p>\n
Although Private Property will become directly controlled by Cognition, it will remain part of the Caxton Group with no ultimate change of control vis-\u00e0-vis either CTP or Caxton, both parties said in a joint statement on Monday.<\/p>\n
Private Property is one of South Africa\u2019s largest property portals. The company holds a significant market share in the South African property market and, in recent years, has grown revenues in
\nexcess of 30%.<\/p>\n
By way of a rationale for the acquisition Cognition said it will have further opportunities to acquire appropriate Caxton digital platforms and other owner-managed digital assets from third parties, which together with existing operational divisions, will result in Cognition becoming a growth-focused investment holding company.<\/p>\n
“The strategy is to blend investments that offer technology platforms with digital opportunities to build models that are flexible, fast, collaborative and creative.<\/p>\n
These innovative platforms will collectively facilitate enhanced business to business (\u201cB2B\u201d) relationships and customer engagement (\u201cB2C\u201d) to promote personalisation for relevant and meaningful experiences in line with privacy regulations and maximise data currency.<\/p>\n
The value of the net assets that are the subject of the acquisition as at 30 June 2018 was R32 366 557, Cognition said.<\/p>\n