Altech acquisition gets nod of approval
JSE-listed Allied Electronics Corp (Altron) says its proposed acquisition of the shares in Allied Technologies (Altech) which it doesn’t already own, is now unconditional, following the results of a general meeting.
The transaction is valued at R1.8 billion.
Altron advised on Friday (26 July, 2013) that all conditions precedent to its proposed transaction, “have been fulfilled and accordingly the proposed transaction is now unconditional”.
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 was widely anticipated 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.
In afternoon trade on the JSE, Altech traded at R47.07.
It is anticipated that Altech will delist from the stock exchange on 20 August 2013.
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.
According to Altron, the Altech brand will remain in place, while management structures have as yet not been finalised.
Robert Venter, chief executive of Altron commented on Altron’s rationale for the transaction: “Convergence of the telecommunications and IT sectors means that Altech and one of our other wholly owned subsidiaries, Bytes, now have many synergistic areas of business. Fully owning Altech will enable us to unlock these synergies, streamline our group structure and improve our go-to-market in terms of more focussed offerings to clients.”
CEO of Altech, Craig Venter said: “Altron’s full ownership of Altech will help to further propel Altron as the leading provider of converged communications on the continent. The synergies between other Altron operations and Altech are already tangible and we look forward to exploring this further now that the acquisition has been approved. The combination of Altech and Bytes will consolidate industry know-how that will be crucial in pursuing new opportunities”.
More on Altron and Altech
Altech delisting expected in July
Altron to take full control of Altech
Altech shares yo-yo ahead of Altron results
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