Altron has announced that it will demerge and separately list its UK business – Bytes UK.
The company said that Bytes UK will be listed in the UK with a secondary listing on the JSE.
While Altron will remain listed on the JSE, it plans to demerge from its remaining investment in the UK.
Altron board chairperson Mike Leeming said the decision to separately list Bytes UK was made following a review of the company’s new financial year strategy.
“The board assessed each of the business units within Altron to identify opportunities which have the potential to unlock further value for shareholders and streamline operations,” Leeming said.
“The board then concluded that the true value of Bytes UK, a wholly-owned subsidiary of Altron, is not reflected in the company’s share price.”
“Through the demerger and separate listing of Bytes UK, we are looking to optimise the business and unlock additional value for shareholders,” he said.
Altron Group Chief Executive Mteto Nyati said that this demerger means Altron will now be entirely focused on Africa, serving more than 20,000 customers on the continent.
“Any future geographic expansion will be from this solid African base,” Nyati said.
“The group will continue to focus on its chosen growth areas of cloud, data analytics, internet of things and security, while our recent acquisition of Ubusha and Altron Karabina will strengthen our capabilities in security, cloud service and data analytics,” he added.
This process is expected to take between nine to 12 months, depending on market conditions.
Altron said that if financial markets have not corrected by then, it may hold off on Bytes UK’s demerger and its separate listing.