Altech announces R1,5bn BEE deal

Technology group Altech on Monday announced a black economic empowerment (BEE) transaction valued at R1,5-billion.

The transaction involves the transfer 25% + 1 share in Altech’s wholly owned subsidiaries, Altech Netstar and Altech Netstar Fleet Solutions.

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 within the same region.

The company said its BEE partners include 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.

Identity Partners is a women-owned and run investment firm that also provides advisory services and manages an SME development fund focusing on black women and youth.

To facilitate the transaction, Altech will create a new wholly owned subsidiary.

Altech will then dispose of its shares in Altech Netstar at fair market value, which is estimated at about R1,5-billion, to the new company with the consideration thereof being settled by the new company issuing preference shares to Altech.

Altech Netstar will acquire the business operations of Comtech and Fleet Solutions out of the respective companies at fair market value of about R0,2-billion and the consideration thereof will be settled via inter-company loans.

Accordingly the new company will have a net asset value of nil at inception.

Post the completion of the restructurings Altech will dispose of 25% + 1 share in the new company to the BEE partners for a nominal value.—I-Net B