Bytes SA, a subsidiary of listed technology group, Altron, says it will acquire 27% of its issued share capital for R669 million from a consortium led by Kagiso Strategic Investments, by way of a share repurchase.
Kagiso Strategic Investments is indirectly owned by Kagiso Tiso Holdings, with the acquisition set to become effective on 30 June 2014.
“Bytes SA is, and has been performing well over the last few years, and Altron will now own 100% of its issued share capital,” said Robert Venter, chief executive of Altron.
“Similar to our recent acquisition of the minority shares of Altech, we are investing further in a business we know well and have been managing for decades.”
“Significant value will also be realised, through this transaction, for the broad-based black economic empowerment shareholders of KTH,” said Venter.
Rob Abraham, CEO of Bytes Technology Group, said the partnership with KTH had seen significant benefits for both organisations and had demonstrated that the principles of broad-based black economic empowerment (B-BBEE) could be applied in a very positive manner.
According to Abraham, Bytes was the first IT company in South Africa to receive a B-BBEE certificate and was the first to receive a Level 3 and subsequently a Level 2 B-BBEE verification status.
Since the delisting of Altech in August 2013 and the formation of Altron TMT, which is a combination of the Altech and Bytes businesses, the Altron group has been in a position to review all of its broad-based black economic empowerment structures in order to align Altron TMT and Altron Power, the latter housing the Powertech operations.
Altron is currently rated as a Level 2 Contributor under the recently promulgated ICT Charter Codes.
Altron said its restructuring project, which includes the integration of Altech and Bytes, the introduction of shared services and a drive to increase innovation and business development, is expected to be completed in the first half of 2016.