Allied Electronics (Altron) has completed its 100% acquisition of Allied Technologies (Altech), announcing that the latter will delist from the JSE effective today, 20 August.<\/p>\n
On 16 August 2013, Altron shareholders approved the acquisition of 34,32 million Altech shares with a total cash value of R1.63 billion.<\/p>\n
“Accordingly, shareholders are advised that the scheme consideration was settled on 19 August 2013, 91.2% by way of cash and 8.8% by way of the issue of new Altron participating preference shares,” Altron said.<\/p>\n
Altech will be delisted from the JSE Limited with effect from 20 August 2013.<\/p>\n
Earlier in August, Altron announced the management structure of its new division, Altron TMT (Telecommunications, Multimedia and Information Technology), which was formed from the ashes of Altech.<\/p>\n
The Altron TMT division will comprise of both the Altech and Bytes businesses, although the two businesses will continue to exist as separate entities maintaining their well-established brand identities.<\/p>\n
\u201cAs a result of increasing convergence between the IT and Telecommunications sectors we were starting to see many opportunities for Altech and Bytes to work closer together,\u201d said Altron CEO, Robbie Venter.<\/p>\n
\u201cFollowing the acquisition of Altech by Altron, it is now possible for us to maximise synergies and eliminate overlap between the Altech and Bytes groups by bringing them together in the Altron TMT division.\u201d<\/p>\n
\u201cIt has become necessary to streamline the operations and put forward the best possible combination of products and services to our clients. We see opportunities for both revenue enhancement as well as cost efficiencies in the new structure.\u201d<\/p>\n
In early trade on the JSE on Tuesday (20 August), Altron shares were trading 0.74% lower at R20.10.<\/p>\n
Altron TMT to rise from Altech<\/a><\/strong><\/p>\n Altech acquisition gets nod of approval<\/a><\/strong><\/p>\n Altech to delist in August<\/strong><\/a><\/p>\n