Aqua Online Holdings, (AQU) the listed e-commerce enablement and support services company announced on Friday that it is to dispose of its gaming subsidiaries and enablement business, distribute the proceeds to shareholders in anticipation of the winding up of the company and terminate its JSE Securities Exchange listing.
The company said that once the disposals have been implemented, a distribution of at least 14 cents a share will be made to shareholders in anticipation of winding-up. Thereafter AOH will apply to the JSE for the termination of its listing.
The company said that its gaming business provides back-office processing services to online casino operators and distributes internet casino software.
The Enablement business consults on and develops e-business solutions. Unforeseen and fundamental developments in the online gaming industry over
the last few months have severely weakened prospects for this market going forward. Worldwide consulting and e-service opportunities have been depressed
for some time.
AOH does not expect short to medium term conditions to improve materially. AOH has continued to make operational losses subsequent to the 2002 financial
year-end primarily as a result of lower revenues in the gaming business.
The board reviewed alternatives to maximise and protect shareholder value. In light of poor medium to long term prospects and the decline in investor
appetite for small capitalisation shares particularly in the information technology industry, it concluded that there is no benefit to a continued listing.
The deal is subject to shareholder and regulatory authority approval, the company said. – I-Net Bridge