ALLIED TECHNOLOGIES LIMITED - Disposal of Altech West Africa Limited

Disposal of  Altech West Africa Limited

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”)


DISPOSAL OF ALTECH WEST AFRICA LIMITED (“AWA”)



AWA was incorporated and commenced business in Nigeria, in 2005. It produces cash recharge
vouchers for the cellular network operators in Nigeria and has more recently commenced the
manufacture of plastic card products for Nigerian banks and other clients.

AWA has been highly profitable for most of the period since its inception, but became loss-
making during the last 18 months, due to a reduction in demand for its secure recharge
vouchers (as opposed to cheaper non-secure products made by other suppliers) and delays in
the up-take of plastic chip cards by banks.   In addition, its “pioneer industry” tax-free
status expired recently.

Taking into account the above factors, the costs involved in maintaining Altech management
control of AWA from South Africa, additional investment required to enhance AWA’s production
facilities, as well as the fact that AWA‘s product area is non-core to the Altech group,
Altech has reached agreement to dispose of its 75% interest in AWA.

The transaction is subject to normal conditions precedent, including due diligence
investigating of AWA, approval by any applicable regulatory bodies and the execution of
detailed agreements containing inter alia normal vendor warranties and restraints of trade.
The effective date will be the first day of the month following the fulfilment of the
conditions precedent.


Johannesburg
26 September 2012

Sponsor
Investec Bank Limited

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