Troubled rapid application development outfit Magic Software Enterprises Ltd has decided to postpone a meeting to discuss the sale of 1 million shares to its principal shareholder and is instead looking to sell to other third party investors. The Israeli company had been thinking of selling the shares, valued at $5.35 a piece or collectively at $5.35m to Mashov Computers Ltd, but directors decided the company would be better served if the shares went to other investors. 1997 has not been a great year for Magic which has attributed a series of unfortunate occurrences such as switches in government policy (CI No 3,220) and relocation charges and staff cuts (CI No 3,202) to poor results. But Magic is set to take a $5m interim loan from Mashov, and hopes shareholders will approve plans to convert the loan into ordinary shares. Magic shares were trading at $3.96875 as we went to press, coming close to their year low of $3.75 which it hit in December, plummeting consistently over the year from a high point of $10. 875 in February.
