JSE listed Allied Electronics Corporation (Altron) says it has reached an agreement with Value Capital Partners Proprietary Limited (VCP) regarding a capital investment of R400 million into the company.<\/p>\n
The deal, which is subject to regulatory and shareholder approval, will also see a change to the Altron control structure in line with Altron\u2019s stated intention to move from a family controlled and managed business to independent management.<\/p>\n
VCP is an investment company founded by Antony Ball, founder and ex-CEO of Brait, and Sam Sithole, ex-CFO of Brait.<\/p>\n
The capital invested by VCP will help Altron accelerate growth plans in line with Altron\u2019s stated goal to focus on its core IT operations.<\/p>\n
Altron will issue new shares to VCP which will provide VCP with an approximate 15% stake.<\/p>\n
The Venter family have agreed that, should the transaction be successfully implemented, it will result in the collapse of Altron\u2019s current control structure through the conversion of the company\u2019s low-voting shares into a single class of voting shares.<\/p>\n
According to Dr Bill Venter, he and the Venter family will remain invested in and fully committed to the company and will thus retain their full economic interest.<\/p>\n
\u201cCurrently I and the Venter family have a 57% voting position in the Altron Group, but our economic position in the Group is approximately 17.5%. Going forward, the family will maintain its economic position and, subject to regulatory approval, a mechanism will be put in place that will afford the family a 25.1% voting position. This will remain in effect as long as the Venter family holds an economic interest of more than 10% in Altron,” he said.<\/p>\n