Altech delisting expected in July

JSE-listed Allied Electronics Corp (Altron) says it anticipate delisting Allied Technologies (Altech) at the end of July 2013.

Altron made an offer through its wholly-owned subsidiary, Altron Finance Proprietary Limited, to acquire the entire issued ordinary share capital of Altech in May.

The move has been widely expected by the market following a poor run of results from Altech.

Altron will pay R47.50 in cash for every Altech Share. It already owns a 62% stake in Altech.

The aim of the transaction is to create a single listed point of entry into the Altron Group, and simplify the corporate and operating structure.

Following implementation of the scheme, application will be made to the JSE to terminate
the listing of Altech Shares on the JSE.

“We are currently busy finalising the circular and are expecting to post it to the shareholders within the next week or so,” said Michelle Doyle, group executive of corporate communications at Altron.

“Following that, the scheme meeting will take place mid-July where the Altech minority shareholders will vote on the transaction. If the transaction is successful we anticipate delisting Altech at the end of July 2013,” Doyle added.

According to Altron, the Altech brand will remain in place, while management structures have as yet not been finalised.

At close of play on the JSE on Wednesday (12 June) shares in Altech traded at R45.30, giving the group a market cap of R4.81 billion.

More on Altron and Altech

Altron to take full control of Altech

Altech shares yo-yo ahead of Altron results

Altron trims dividend payout

Altech looks east for new growth

Altech suffers heavy losses