Altech BEE deal
“Transformation is a key focus area for Altech and Altech participates in opportunities which facilitate meaningful and sustainable growth for the business of Altech as well as for individuals in South Africa,” the company said in a statement.
It said it would enter into a 25 percent plus one share BEE transaction in relation to its wholly owned subsidiaries, Altech Netstar, Comtech and Altech Netstar Fleet Solutions.
Altech said it had entered into the transaction with BEE companies Thebe Investment Corporation and Identity Capital Partners.
“Thebe is a diversified, black investment management company with 17 years’ experience and has an established history of adding value to its underlying investments whilst promoting the social and economic development of black people and black women,” Altech said.
It said Identity Partners was a women owned and run investment firm, focusing on women and youth.
“Altech believes that the transaction will result in a long-term sustainable relationship with the BEE partners and a platform from which both parties can participate in and benefit from the Netstar Businesses.”
To facilitate the transaction, Altech said it would create a new wholly owned subsidiary — Newco.
It would then dispose of its shares in Altech Netstar at fair market value, which was estimated at about R1,5 billion, to the new company.
“The consideration thereof will be settled by Newco issuing preference shares to Altech.”
Altech Netstar would acquire the business operations of Comtech and Fleet Solutions out of the respective companies at fair market value (around R0.2 billion) and the consideration thereof would be settled via inter-company loans, Altech said.
Accordingly Newco would have a net asset value of nil at inception.
Altech said post the completion of the restructurings it would dispose of 25 percent plus one share in Newco to the BEE partners for a nominal value.
Altech Netstar’s primary business focus is providing stolen vehicle tracking and recovery services to subscribers within Southern Africa, while Comtech and Fleet Solutions provide fleet management solutions to subscribers in the same region.
Altech BEE deal – discussion
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