Teddy Daka’s Etion Explores Asset Sale to Create Shareholder Value

Etion

JSE-listed Etion is considering selling off business units to create shareholder value for its investors.

The diversified digital technology company did not specify how much it hopes to raise from asset sales.

In  August, Teddy Daka, the boss of Etion, told TechFinancials that is looking to take the company internationally as he aims to cut business risks associated with slower growth in South Africa.

The firm, which is seeking expansion opportunities in Latin America and South-East Asia, informed investors on Wednesday that its board had initiated an investigation into various options available to Etion to unlock value for its shareholders.

“The board has, inter alia, entered into discussions to dispose of its various operating subsidiaries/divisions (Disposal Process), which if successfully concluded, may have a material effect on the price of Etion’s securities,” the company said.

Etion added that it has appointed an Independent Board to oversee the Disposal Process as required in terms of the Companies Act, 2008 (Act 71 of 2008), as amended.

The company advised its shareholders to exercise caution when dealing in its shares until a full announcement is made.

Etion is using lean startups to test its IoT solutions in Latin America and Southeast Asia.

The aim is to support the sustainable long-term growth of its fast-growing business unit, Etion Create and Etion Secure (LAWTrust).

The funds from disposals may be used to expand its services in Latin America and Southeast Asia.

Etion is busy exploring growth opportunities for Etion Create in Indonesia and Mexico.

Etion Create specialises in the design, manufacturing, integration, and support of advanced technology.

In short, Etion Create is one of the world’s leading Original Design Manufacturing companies. It embraces this new world of IoT technologies, big data and the cloud, with the skills and commitment to software excellence, creating the right platforms for collecting, analysing and understanding information crucial to your business.

The company is also eyeing growth opportunities for Etion Secure or LAWTrust.

Christi Maherry, CEO of Etion Secure, told TechFinancials in August that the major driver for opportunities for LAWTrust is that the world has to adapt to remote working during COVID-19.

“As a company, we provide services for on-boarding, ID proofing, cryptography, biometrics and digital signatures. LAWTrust is also part of a globally certified trust centre providing trust services. This has opened the door to taking the business internationally,” said Maherry.

 

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