Altron to get R400 million investment boost
JSE listed Allied Electronics Corporation (Altron) says it has reached an agreement with Value Capital Partners Proprietary Limited (VCP) regarding a capital investment of R400 million into the company.
The deal, which is subject to regulatory and shareholder approval, will also see a change to the Altron control structure in line with Altron’s stated intention to move from a family controlled and managed business to independent management.
VCP is an investment company founded by Antony Ball, founder and ex-CEO of Brait, and Sam Sithole, ex-CFO of Brait.
The capital invested by VCP will help Altron accelerate growth plans in line with Altron’s stated goal to focus on its core IT operations.
Altron will issue new shares to VCP which will provide VCP with an approximate 15% stake.
The Venter family have agreed that, should the transaction be successfully implemented, it will result in the collapse of Altron’s current control structure through the conversion of the company’s low-voting shares into a single class of voting shares.
According to Dr Bill Venter, he and the Venter family will remain invested in and fully committed to the company and will thus retain their full economic interest.
“Currently I and the Venter family have a 57% voting position in the Altron Group, but our economic position in the Group is approximately 17.5%. Going forward, the family will maintain its economic position and, subject to regulatory approval, a mechanism will be put in place that will afford the family a 25.1% voting position. This will remain in effect as long as the Venter family holds an economic interest of more than 10% in Altron,” he said.
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