Allied Electronics Corp (Altron) says it\u00a0has made an offer through its wholly-owned
\nsubsidiary, Altron Finance Proprietary Limited, to acquire the entire issued ordinary
\nshare capital of Allied Technologies (Altech).<\/p>\n
The move has been widely expected by the market following a poor run of results from Altech.<\/p>\n
Altron will pay R47.50 in cash for every Altech Share. It already\u00a0owns a 62% stake in Altech.<\/p>\n
Shares in Altech jumped 27.94%, or R9.61, to R44 on the news, while\u00a0Altron declined 2.15%, or 44 cents, to R20.06 on the JSE. The All Share Index was off a fraction to 41,379.<\/p>\n
Following implementation of the scheme, application will be made to the JSE to terminate
\nthe listing of Altech Shares on the JSE.<\/p>\n
The aim of the transaction is to\u00a0create a single listed point of entry into the Altron Group,\u00a0simplify the corporate and operating structure of the Altron Group; and enable the maximisation of synergies within the Altron Group, both parties said in an statement on Friday (17 May).<\/p>\n
Altron results<\/strong><\/p>\n On 8 May 2013, Altron announced a 6% rise in revenue to R25 billion for the year ended February 2013, however, the group trimmed its dividend pay-out largely due to losses incurred by its subsidiary, Altech.<\/p>\n Earnings before interest, tax, depreciation and amortisation (ebitda) decreased 19% to R1.6 billion against the comparative year in 2012, and headline earnings per share decreased by 29% to 136 cents.<\/p>\n Altron declared a gross ordinary dividend of 60 cents per ordinary share, from 92 cents in 2012.<\/p>\n Altech results<\/strong><\/p>\n Late last month (24 April), Altech reported a diluted basic loss per share from total operations of 920 cents for year ended February 2013, from a prior loss of 275 cents before.<\/p>\n Revenue from continuing operations improved 4.7% to R10.16 billion, from R9.58 billion before, while results from continuing operating activities grew to R626 million, from R476 million in 2012.<\/p>\n However, from discontinued operations following the disposal of its Telecommunication Network interests in East Africa, Altech pointed to a R1.54 billion loss from its operating activities, compared to a prior loss of R657 million.<\/p>\n It recorded an overall loss for the year from discontinued operations of R1.636 billion.<\/p>\n Altech decided not to declare a dividend in respect of the current financial year to conserve cash resources.<\/p>\n Altech shares yo-yo ahead of Altron results<\/strong><\/a><\/p>\n Altron trims dividend payout<\/strong><\/a><\/p>\n Altech looks east for new growth<\/strong><\/a><\/p>\n Altech suffers heavy losses<\/a><\/strong><\/p>\n Altech climbs 4.5% on negotiation talks<\/strong><\/a><\/p>\nMore on Altron and Altech<\/h3>\n