Altech climbs 4.5% on negotiation talks
Shares in JSE-listed Allied Technologies Limited (Altech) advanced 4.56% or R1.64 to R37.60 on the JSE in afternoon trade on Friday (22 March) after it noted that it was in negotiations.
“Shareholders are advised that the company has entered into negotiations which if successfully concluded may have a material effect on the company´s securities. Accordingly shareholders are advised to exercise caution when dealing in the company´s securities until a full announcement is made,” Altech said in a statement released on SENS.
Similarly, Altech’s parent company, Allied Electronics (Altron) delivered a cautionary announcement of its own. Shares in Altron lifted 20 cents to R21.70.
Shares in Altech have almost halved over the past three years, largely as a result of its operations in East and West Africa.
The group disposed of its East African operations in February, having offloaded a 75% stake in its West Africa business in September.
Due to impairments at Altech, Altron has also suffered financially. In a trading statement issued at the end of January, Altron said it anticipated an estimated loss of R666 million realised at Altech on the disposal of its East Africa business.
Altron accordingly advised that it expected its basic earnings per share for the year ending February 2013 to be more than 100% lower than in 2012, “predominantly as a result of the impairments in the first half at Altech, as well as the aforementioned losses arising from the Altech East Africa transactions”.
More on Altech and Altron
Altech offloads West Africa operation
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