Altron gets thumbs up for R1.8bn Altech buy-out
JSE-listed Allied Electronics (Altron) has been given the go-ahead to buy out the shares it did not already hold in 61%-owned Allied Technologies (Altech).
Altech was expected to delist from the JSE on August 20, as the remaining 29% in shares transferred from minority shareholders to the majority shareholder for R1.8-billion in cash and shares.
Altron had offered R47.50 for every Altech share owned or preference shares of 2.22 Altron shares for each Altech share held by the minority shareholders.
A maximum of 50% of the total scheme consideration will be paid out in Altron participating preference shares.
The deal was expected to unlock synergies between Altech and Altron’s wholly owned subsidiary Bytes, streamline the group structure and improve the parent group’s go-to-market offerings to clients, Altron CEO Robert Venter said on Friday.
Altech’s incorporation as a fully owned subsidiary of Altron would allow for a more “efficient capital allocation” within the group and an “investor-friendly structure”, as the Altron group would be a single JSE-listed group.
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