Bytes SA has bought out its empowerment partners in a R699 million deal, bringing to an end a 10-year relationship.
The local unit of Bytes Technology Holdings will buy back the 27% stake from a consortium led by Kagiso Strategic Investments, which is indirectly owned by Kagiso Tiso Holdings, at the end of June.
Altron CEO Robert Venter says the deal will enhance value for Altron's shareholders. "Bytes SA is, and has been performing well over the last few years, and Altron will now own 100% of its issued share capital. Similar to our recent acquisition of the minority shares of Altech, we are investing further in a business we know well and have been managing for decades."
Last year, Altron spent R1.8 billion to but out minority shareholders in Altech.
Kagiso has been Bytes' empowerment partner since 2004 and - despite the buyback - Bytes will remain a level two contributor, with level one being the highest possible level in terms of government's empowerment scorecard.
Altron is now re-evaluating its empowerment structures across the group with a view to streamlining the structure.
Since the delisting of Altech in August 2013, Altron has formed Altron TMT, which is a combination of the Altech and Bytes businesses, and has been integrating and streamlining units. It is currently a level two contributor under the ICT charter.
Bytes Technology Group CEO Rob Abraham says the partnership with Kagiso had led to significant benefits for both organisations.
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