The controlling shareholder of Altech and Bytes Technology, Altron, announced last week that it planned to buy out the two firms’ minority shareholders to gain full ownership of the information technology (IT) and telecommunications companies, sending the two companies’ share prices to their highest levels in the last 12 months.
Altron made an all-share offer to buy the 38,2% shareholding that it does not own in Altech from minority shareholders, and a further 42,3% stake in Bytes for some R4,8-billion.
CEO Robert Venter said that the transactions would simplify Altron’s organisational structure, by focusing the company on two broad segments, namely Power Electronics, and Telecoms, Media and IT.
“The acquisitions proposed today are the culmination of a strategic objective to simplify our group structure that was initiated in 2001. This structure will allow us to maximise synergies and customer delivery between converging IT and telecoms markets currently served by our Bytes and Altech operations,” he said.
He said that the deals would also create a single point of entry into the Altron group, while it would limit the potential strategic conflicts of interest that currently exist, between Altech and Bytes in relation to corporate opportunities.
Venter said that Altron would preserve the strong brand and market strength of the two companies and that the firm had “no intention” to merge Altech and Bytes.
Altron is offering shareholders in Altech and Bytes a 29% premium for their shares, calculated on the respective 30-day volume weighted average price of the respective shares.
Edited by: Martin Zhuwakinyu
Creamer Media Senior Deputy Editor
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