Altech West Africa talks still ongoing

Allied Technologies (Altech) says negotiations relating to the sale of its flagging West Africa operations are still ongoing.

In April,  the group reported a pre-tax loss of R240 million for year ended February 2012, from a prior profit of R459 million, following losses in East and West Africa.

Altech CEO, Craig Venter said on 25 April 2012 that the group is six to eight weeks away from disposing of its ailing West Africa operation. That time has almost past.

He noted that two companies had expressed interest in the group and was confident that a deal would be concluded within eight weeks, “to alleviate further losses”.

The company head added that should discussions to sell the business fall through, it would undergo a controlled auction process.

On Thursday (21 June) Shenanda Janse van Rensburg, group executive for marketing, PR & communications, told BusinessTech: “With regard to Altech West Africa, Altech is currently in negotiations with potential buyers to acquire its 70% shareholding in Altech West Africa and will make an announcement in this regard at the appropriate time.”

In May, Altech KDN (KDN), the group’s operation in Kenya, East Africa began a collective consultative process at exco level to discuss plans for a reduction in staff numbers in which KDN identified 51 affected employees.

Altech Netstar

Venter previously stated that Altech’s subsidiary and vehicle tracking solutions provider, Altech Netstar has been exploring the possibility of an acquisition in Latin America. In April,  the company head said that it was in advanced stages of a “major acquisition” in Latin America which would make Netstar the biggest vehicle tracking company in the world.

According to Janse van Rensburg , with regard to Altech Netstar, “Altech continues to consider all opportunities that complement existing service offerings that enable growth in specific markets and segments and will make an announcement in this regard at the appropriate time.”

In afternoon trade on the JSE, shares in Altech declined 0.52% to R48.25.

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Altech West Africa talks still ongoing