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ALT - Allied Technologies Limited - Strategic investment in Altech 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 STRATEGIC INVESTMENT IN ALTECH Shareholders are advised that Altech has entered into an agreement with Intel Capital as part of a strategic collaboration in which Intel Capital and Altech will explore various areas of collaboration in the Telecommunications, Multi-Media and Information Technology ("TMT") sectors to accelerate the adoption of broadband services in Africa. 1. THE PROPOSED TRANSACTION Intel Capital have agreed to invest USD 5 Million in accordance with the provisions of a convertible loan. The convertible loan has a term of 3 years and will bear interest at a fixed rate calculated with reference to the 3- year LIBOR USD swap rate plus 3% per annum, based on a 360-day year and interest calculated on the basis of actual days lapsed. Intel Capital have the option to convert the loan, together with all accrued interest thereon, into Altech ordinary shares at any time between the first anniversary of the date on which the convertible loan agreement becomes effective and the third anniversary thereof or repayment of the loan (if later) ("the Conversion Right"), or in the event of a default on the loan. The Conversion Right would be based on the aggregate of the volume weighted average traded price per ordinary share on the JSE over the 30 business-day period ending on the date on which the convertible loan agreement becomes effective (expected to be on or about 1 August 2011), plus a 5% premium thereon. 2. RATIONALE This investment will form part of an on-going strategic business relationship which will explore various areas of collaboration in the TMT sector across Africa and other applicable emerging markets. 3. FINANCIAL EFFECTS OF THE PROPOSED TRANSACTION The proposed transaction will have no material effect on Altech`s earnings, headline earnings, net asset value or tangible net asset value and, accordingly, any such effect has, therefore, not been disclosed. 4. DIRECTORS` RECOMMENDATION AND RESPONSIBILITY STATEMENT The board of Altech is of the opinion that the proposed transaction will benefit shareholders and, accordingly, recommend that shareholders vote in favour of the resolution(s) set out in the notice of general meeting. 5. GENERAL MEETING A circular and notice convening a general meeting have been posted to shareholders on 21 June 2011. The general meeting will be held on Wednesday, 20 July 2011 at 16:00, or as soon thereafter as the Annual General Meeting convened to be held at 15:00 on the same date has concluded, in the Boardroom, Altech Corporate Offices, 79 Central Street, Houghton, Johannesburg to consider and, if deemed fit, to pass with or without modification, the resolutions necessary to authorise the proposed transaction. Johannesburg 23 June 2011 Investment Bank and Sponsor: Investec Bank Limited Date: 23/06/2011 10:39:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
