Altron to dispose of Powertech System Integrators (PTSI)

JSE listed Allied Electronics Corporation Limited (Altron) has advised shareholders that Power Technologies Proprietary Limited (Powertech) has entered into an agreement to dispose of its Powertech System Integrators (PTSI) business to Capitalworks Private Equity Advisor Proprietary Limited or its nominee for a purchase price of R140 million exclusive of VAT.

The deal will exclude the businesses of Powertech QuadPro SA Proprietary Limited and Technology Integrated Solutions. The disposal amount was calculated on an enterprise value basis (cash and debt free basis) and will include all of the operating assets and liabilities of the PTSI business including all client and supplier contracts, as well as tangible and intangible assets. Commenting on the disposal, Robert Venter, Chief Executive of Altron, said: The disposal of PTSI follows a joint strategic decision by both Altron and Powertech that PTSI was no longer a core asset for the Altron group and accordingly should be disposed of to a third party that would be better suited to further develop the business. The deal will become effective following the fulfillment of the last of the conditions precedent and the proceeds realised will be used to reduce the overall Altron group debt. The disposal of PTSI is in line with Altron's new strategy to focus the groups competitive advantage in the IT and telecommunications space and limit our exposure to the manufacturing sector, concluded Venter.