The shareholders of ConvergeNet Holdings Limited (JSE:CVN) authorized a share repurchase program at its Annual General Meeting on January 27, 2012. Under the plan, the company will repurchase own ordinary or preference shares, representing up to 5% of its ordinary or preference issued share capital. Repurchases may not be made at a price more than 10% above the weighted average of the market value on the JSE for the five business days immediately preceding the repurchase. Repurchases may not take place during a prohibited period unless a repurchase program is in place and full details thereof announced on SENS prior to commencement of the prohibited period. Repurchases may only take place if, after such repurchase, the shareholder spread of the company still complies with Listings Requirements of the JSE. Also, at any point in time, the company may only appoint one agent to effect repurchases on its behalf. After the company has acquired shares which constitute, on a cumulative basis, 3% of the number of shares in issue, the company shall publish an announcement to such effect, or any other announcements that may be required in such regard in terms of the Listings Requirements of the JSE which may be applicable from time to time. The plan will expire at the conclusion of the next Annual General Meeting of the company or after 15 months, whichever is earlier. On September 10, 2012, the subsidiary of the company will repurchase 71,478,594 shares, representing 7.76% of the issued capital for ZAR 21.2 billion from Titan Share Dealers. A purchase price offered of 29.675 cents per ordinary share by CMS has been accepted by Titan, which represents a discount of 4.77% to the 30 business day volume weighted average price of 31.16 cents per share up to and including August 6, 2012. The agreed purchase price of 29.675 c represents an attractive investment opportunity for ConvergeNet which the Board believes is a significant discount to the intrinsic value of the company's shares. The proceeds of the Future Cell transaction will be partially used to fund the transaction with the balance to be used for general corporate purposes, including expansion capital for underlying subsidiary companies. The transaction is subject to the fulfillment or waiver (to the extent capable of wavier) of the following suspensive conditions by not later than November 30, 2012, the Future Cell sale agreement being executed and becoming unconditional in accordance with its terms, the board of directors of Titan authorizing the sale of the purchase shares to CMS and the conclusion of the share purchase agreement on the terms and conditions set out therein, the approval of the acquisition of the purchase shares by the requisite majority of the directors of ConvergeNet and CMS, the approval of the shareholders of ConvergeNet by way of special resolution at a general meeting, the approval of the provision of financial assistance by ConvergeNet in favor of CMS for the payment of the purchase consideration by the shareholders of ConvergeNet by way of special resolution at a general meeting and the receipt of unconditional approvals, consents or waivers from all regulatory bodies, necessary to implement the transaction. The effective date of the transaction is the first business day following the date upon which the last suspensive condition is waived or fulfilled. Werksmans Incorporated acted as an escrow agent for the transaction.