Wrap Text
ALT - Allied Technologies Limited - Altech announces 25% Black Economic
Empowerment deal for Altech UEC
Allied Technologies Limited
Member of the Altron Group
Incorporated in the Republic of South Africa
(Registration number: 1946/020415/06)
Share code: ALT
ISIN number: ZAE000015251
("Altech" or "the company")
18 April 2011
ALTECH ANNOUNCES 25% BLACK ECONOMIC EMPOWERMENT DEAL FOR ALTECH UEC
JSE-listed Allied Technologies Limited (Altech) is pleased to announce a 25%
plus 1 share Black Economic Empowerment (BEE) transaction in relation to Altech
UEC.
Altech UEC`s primary business focus is the manufacture and provision of
satellite and terrestrial digital set-top box (STB) decoders.
The transaction has been entered into with a consortium of BEE partners
consisting of Power Matla (the lead BEE partner), Epiworx Investment (Epiworx)
and Empower a Thousand Holdings (EaT). These diversified black investment
companies have an established history of adding value to their underlying
investments whilst promoting the social and economic development of black people
and black women.
According to Craig Venter, Altech CEO, the transaction is evidence of Altech`s
commitment to transformation and empowerment.
"Altech`s transformation vision focuses on empowerment through skills
enhancement, representative shareholding and widespread development of
disadvantaged communities by focusing on areas with maximum long-term benefit,"
said Venter.
Venter said the transaction would result in a long term sustainable relationship
with its BEE partners, and create a platform from which all parties could
participate in, and benefit from, the Altech UEC businesses.
"Government`s clarification on the DTT standard and the ICT industry`s recent
interactions with Minister Roy Padayachie are clear indications that Government
recognises that ICT is the catalyst for economic growth in South Africa. This
transaction is one example of Altech`s commitment to stimulating business
opportunities and creating employment as part of the digital migration process
and government`s overall job creation targets," he said.
Power Matla Chairman, Solly Moloko, said that with more than 35% women ownership
in the consortium, the transaction supports one of the United Nations Millennium
Development Goals of promoting gender equality and empowering women and is in
line with government`s vision of creating sustainable local manufacturing and
employment opportunities.
"The consortium is excited to partner with Altech UEC, not only in South Africa
but in the rest of Africa. The manufacture and supply of set-top boxes is
destined to deliver access to a variety of technological opportunities to even
the most remote rural areas and will go a long way to reducing the digital
divide in South Africa and on the continent at large," said Moloko.
"We are pleased with this transaction as we see it as an extension of our twelve
year long partnership with the Altron Group and we are of the view that
significant synergies with other investments currently in our portfolio can be
realised. We look forward to supporting the management of Altech in realising
the company`s growth objectives," concluded Moloko.
According to the Chairperson of Epiworx Investment, Chichi Maponya, a 100% black
women owned investment company, its participation in the transaction will
directly benefit its 52 women shareholders, many of whom have never benefited
from empowerment transactions.
"Collectively, Epiworx Investment is bringing more than 50 years of commercial
and legal experience to the transaction, so our preference is to be seen as a
value adding partner through active and meaningful participation at all levels
where appropriate. This transaction affords us such an opportunity through
representation at board level," she said.
Vusi Sidinile, Executive Chairman and founder of EaT, said the company was proud
to be associated with the Altech Group through this transaction.
"EaT believes in real empowerment and is excited about the relationship within
the consortium as well as with the new relationship with Altech UEC. As a 75%
women owned entity, EaT believes that this inaugural transaction paves the way
for a long and healthy relationship with the Altech Group," he said.
More about the transaction:
Altech will form a new company ("Newco") in order to acquire the Africa-based
operations of Altech UEC. Newco will acquire the businesses on loan account.
This structure will enable Altech to sell to the BEE consortium a 25% plus 1
share interest in Newco, via a company set up for this purpose ("BEEco"). The
shareholding in BEEco will be as follows:
* Power Matla = 65%
* Epiworx Investment ("Epiworx") = 20%
* Empower a Thousand Holdings ("EaT") = 15%
The agreements governing the Transaction include limited warranties and terms
and conditions that are customary to transactions of this nature. The effective
date of the Transaction will be the first day of the month following the month
in which the last conditions precedent in terms of the agreements are fulfilled.
For further information please contact:
Craig Venter
Chief Executive Officer: Altech
Tel: +27 11 715 9004
Cell: +27 83 236 8000
E-mail: cventer@altech.co.za
and/or
Shenanda Janse van Rensburg
Group Executive: Marketing, PR & Communications - Altech Head Office
Tel: +27 11 715 9031
Mobile: +27 84 777 1977
Email: sjvrensburg@altech.co.za
www.altech.com
JSE code: ALT
Investment Bank and Sponsor: Investec Bank Limited
Date: 18/04/2011 17:34:39 Supplied by www.sharenet.co.za
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