TECHNOLOGY group Altech yesterday announced a black economic empowerment transaction valued at R1,5billion.
The transaction involves the transfer of 25percent + 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 and black women.
Identity Partners is a women owned and run investment firm, which 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.
It will then dispose of its shares in Altech Netstar at fair market value, estimated at about R1,5bn, to the new company with the consideration thereof being settled by it issuing preference shares to Altech.
Post the completion of the restructurings Altech will dispose of 25percent + 1 share in the new company to the BEE partners for a nominal value. - I-Net Bridge