Caxton snaffles FoneWork stake

28 May 2013

The Kirsh family‚ owner of media group Primedia‚ has sold its shares in AltX-listed telecommunications company FoneWorx to Caxton for R102.5m‚ FoneWorx said on Monday (27 May).

FoneWorx provides the technology platforms for companies to run SMS competitions.

The company said the transaction between FoneWorx and the Value+Nettwork‚ founded by the Kirsh family‚ had been "terminated by mutual consent and all disputes between the company‚ Value+ and the Isaac and William Kirsh Family Trusts (Kirsh family) have been resolved".

The transaction comes a month after the Kirsh family called for the removal of FoneWorx executives.

The family accused the executives of failing to develop strategies that would enhance shareholder value‚ both strategically and financially.

The family said there was a "poor state of corporate governance" at FoneWorx.

In December‚ the companies announced plans to merge FoneWorx and Value+‚ to create a R478m entity‚ in which 10 areas of potential between the two entities had been identified by Value+ founder William Kirsh - who until 2009 served as Primedia's chief executive.

Source: I-Net Bridge

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