Altron sheds Aberdare in R1.2bn deal with Chinese suitors
JSE-listed Allied Electronics (Altron) has offloaded a controlling stake in its Aberdare Cables’ South African unit and 100% of Aberdare Europe to Chinese cable manufacturer Hengtong Optic – Electric for R1.2-billion.
The binding agreement would see Altron’s wholly owned subsidiary Power Technologies retain a 17.5% interest in Aberdare Cables’ South African operation for two years, after which Shanghai Stock Exchange-listed Hengtong would acquire the remaining stake.
The deal excluded Aberdare Cables’ 50% equity stake in the CBI Electric Aberdare ATC Telecom Cables joint venture and the 49% equity stake in Alcon Marepha, which had been sold separately for R19-million.
“The sale to Hengtong is the right move for Aberdare, as Hengtong is well-suited to support and develop the Aberdare Cables group through procurement benefits, product expansion, systems development, geographic expansion and technical expertise,” Altron CEO Robert Venter said.
The move formed part of Altron’s strategy of continuing to focus on core businesses and reduce its exposure to manufacturing.
“Aberdare Cables is a strategic acquisition, as it will increase our market presence and enable us to enhance our global competitiveness, particularly within emerging markets,” Hengtong chairperson Genliang Cui said.
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