Altron sells shares in Powertech for R250 million

JSE-listed Allied Technologies Limited (Altron) has announced that it plans to sell its 80% stake in PowerTech Transformers for R250 million.

The shares are being sold to a consortium which comprises of European transformer manufacturer SGB-SMIT, and local black-owned company Power Matla Group.

In a shareholder statement released on Wednesday, Altron confirmed that the decision was made as it no longer saw PowerTech as a core asset and was better suited for further business development under a third party.

This will enable Altron to focus on its core operations within the ICT sector going forward, the group said.

The value of the net assets to be disposed of as at 31 August 2017 amounted to R110 million.

For the six months ended 31 August 2017, Powertech Transformers generated revenue of R522 illion, EBITDA loss of R51 million and a loss after tax of R69 million.

The deal remains subject to certain conditions, including regulatory approvals.

Read: Altron partners with Tango Telecom for data monetisation solutions

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Altron sells shares in Powertech for R250 million