http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.10
R/$ = 10.50Change: 0.05
Au 1294.90 $/ozChange: -0.67
Pt 1407.50 $/ozChange: -21.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 16, 2008

Altron still believes single listed entry point is the way to go

Back
 
Altech|Altron|Bytes Technologies|Public Investment Corporation|ZAR|Electronics|Technology Group|Craig Venter|Robert Venter
altech|altron|bytes-technologies|public-investment-corporation|zar|electronics|technology-group|craig-venter|robert-venter
© Reuse this



Electrical engineering, electronics and technology group Altron – which reported record revenues of R20-billion and a record after-tax profit of R1-billion for its financial year ended February 2008 – would continue to pursue its stated ambition of setting itself up as the single listed entry point for shareholders by buying out the minorities in its JSE-listed subsidiary, Altech.

Last year, Altron withdrew its bid to acquire the 38,2% of the issued ordinary share capital of Altech it did not already own, follow-ing opposition from the State-owned Public Investment Corporation (PIC), which is a key Altech shareholder.    

However, speaking at a presentation held at the JSE auditorium last week, CEO Robert Venter indi-cated that it was still keen on pursuing a simplification of the group’s structure, indicating, though, that it was a “process, not an event”.

Speaking separately to Engineer-ing News, Venter said that it was continuing to engage on the issue internally and externally, including with the PIC, as it was convinced that significant benefits would flow both for the company and its shareholders.

The main benefit would be in creating an environment where capital could be allocated from the centre, with the current situation, where most of its R2-billion in cash resided within Altech, limiting efficient capital allocation.

In fact, as of year-end, R1,6-bil-lion worth of that cash resided within Altech, which was led by Venter’s brother, Craig Venter – some of that money had subsequently been spent on three acquisitions concluded post year-end.

Venter also told Engineering News that the initial rationale for the proposed buyout of minorities at both Bytes Technologies (which was successfully completed last year)and Altech (which was thwarted) was to enlarge the scale of the single entry point to that of an Alsi 40 company.

Such scale was perceived as especially necessary to attract interest from international investors and investment funds.

He indicated that the main constraint to achieving the goal remained that of convincing the PIC, while ensuring that any ensuing deal did not lead to an erosion of the Venter family’s controlling interest in Altron.

The other proviso was to achieve a transaction without overly leveraging the company’s balance sheet, with Venter insisting that it had no intention of raising a “couple of billion rand” simply to buy out minorities.

“So, it might take a little longer to generate that cash internally and we will then review the situation,” he added.

When Venter took over at Altron in 2001, the group had six listed entry points, which had been reduced to two following the buyout of the Bytes minorities.

Earlier in the presentation, it was indicated that the timing could involve anywhere between six months and three years, with Venter adding that the board had again discussed consolidation options at its recent meeting.

However, he stressed that nothing formal was on the table.

“All options will be considered,” Venter added, stressing that these would continue to take account of the company’s performance, the relative share price values, and the impact a transaction would have on Altron
shareholders.

In the meantime, Altron would be keen to buy back its own shares as well as buy more of Altech.

However, it had only limited leverage to do so and it would, thus, seek additional authority to do so at its next annual general meeting.

“Some of our best buys have been either to buy back our own shares, or to buy out partners in businesses we already own and know well,” Venter concluded.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other News This Week News
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks