| Fri 7 Sep 2001, 0:00 | | Unihold Announces A Major Repositioning |
|
UNIHOLD LIMITED
PRESS RELEASE
7th September 2001
JSE Securities Exchange listed IT Company, Unihold Limited, announced today
that it is undertaking a complete repositioning which will radically
transform the company.
Gary Harlow, who is stepping down as CEO today to take up the post as CEO of
PECASO, Unihold's offshore subsidiary, says that in the current market small
capitalisation IT companies are delivering sub-optimum value to their
customers, shareholders and staff.
Consequently, the Unihold board has re-examined its business strategy and
has decided to refocus the company as an IT Investment Company, with a
strengthened executive team to unlock and create value for its shareholders.
The process is in fact already underway with the merger in June of Unihold's
IT Business Solutions division, Unihold Business Solutions (UBS) with
Siemens Business Services (SBS) effective September 2001. Siemens paid
Unihold R40 million in cash for the business. In terms of the transaction,
Unihold retains 40 % of the larger combined IT business, which will trade
under the "Siemens Business Service" banner.
According to Harlow, the merger of the two businesses creates a substantial
IT group with the requisite critical mass and the ability to generate
substantial income for the group.
Coinciding with the change in strategy at Unihold, Mike Rolfe, a former
founder member of Qdata, has been appointed Chief Executive Officer of
Unihold. Harlow, announced earlier that he will assume the role of CEO of
Pecaso and focus on overseeing the listing of the Unihold international
subsidiary, on the London Stock Exchange, market conditions permitting.
This is Unihold's largest investment and the Unihold Board felt that with
his unique IT management and merchant banking skills, it was imperative to
second Harlow to oversee this initiative directly.
Rolfe brings a wealth of experience to his new position as CEO of Unihold.
He was formerly Director of SPL (Pty) Ltd and Managing Director of Computer
Configuration Holdings. The board believes he adds new and complementary
skills to the running of the company.
Commenting on his new appointment, Rolfe says he is looking forward to the
challenge.
"Unihold faces the same problems as a number of small Cap IT companies - a
lack of critical mass and limited ability to expand through acquisition.
The new structure allows us to capitalise on our strengths while maintaining
a solid income stream from our existing investment businesses. At the same
time we are providing investors with the potential for some blue sky through
the formation of our new IT fund. We have assembled an excellent team and
in due course I look forward to delivering results. World-class intellectual
property can be acquired in South Africa, for a fraction of the overseas
equivalents. Our new team being assembled within Unihold has the ability to
identify, build and unlock this potential."
One of the first tasks facing Rolfe and Harlow is the listing of Pecaso on
the London Stock Exchange, a process dependent on market conditions. Pecaso
is a leading pan - European, technology driven, predominantly SAP, provider
of human resources (HR) solutions and services. Pecaso has a particularly
strong presence in Germany and the UK. At present Unihold holds a 60% stake
in Pecaso but will reduce to around 40% on listing. The proceeds from the
listing will be used to repay remaining Unihold debt and to provide further
finance for new IT investments.
While Harlow will in future be making a major time commitment to Pecaso as
its new CEO, his skills will not be entirely lost to the Group.
"We will still see Gary every third week or so," says Rolfe. "After all, he
remains an important member of the Unihold team. It is important for the
success of Pecaso that Gary takes responsibility for getting the company up
and running, especially in its first year of the listing. His unique skills
and abilities are ideally suited to this task."
Precipitated by the year-ends of its two major investments - Pecaso in March
and SBS in September - Unihold's year-end will change from June to
September. This has meant the issuing of a second set of interim results
for the twelve months to 30 June, which will be followed by results for the
15-month period to 30 September, to be issued in late November.
ENDS
ENQUIRIES:
Unihold Limited
Gary Harlow Tel: 011-268 6080
082-457-0741
Michael Rolfe Tel: 082-820-3030
David Deetlefs Tel: 083-250-3012
Trilogy Communications
Graham Fiford Tel: 011-325-0533
