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Altron completes battery unit sale

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 04 Jul 2017
Altron CEO Mteto Nyati.
Altron CEO Mteto Nyati.

Altron subsidiary, Powertech, has disposed of its Powertech Batteries business to Trinitas for R300 million.

The planned deal was announced in November 2016 but Altron has now told shareholders in a SENS announcement that all conditions precedent have been met and the transaction "has become effective".

The decision to sell came after strategic review sessions by Altron and Powertech last year, where both boards determined the Powertech Battery Group was no longer a core asset for Altron and accordingly "should be disposed of to a third party who will be better suited to further develop this business going forward and extract value for shareholders".

The total cash consideration for the sale is R300 million with R160 million paid on the effective date of the transaction and another R140 million "will be linked to and conditional upon actual receipts of Automotive Production Development Programme income from the effective date".

The JSE-listed group said in November the cash realised would be used to reduce the overall Altron group debt.

The Powertech Battery Group manufactures and distributes automotive batteries for the South African market. This includes two battery brands in the automotive aftermarket sector ? Willard and Sabat Batteries. Powertech's range of batteries extends to several market sectors, including passenger and heavy-duty vehicles, agriculture, leisure and marine.

The Trinitas acquisition will include divisions within Powertech Batteries, including Powerbat (Namibia) and Webroy, among others, but excludes Powertech's equity interest in the Enersys joint venture, which pertains to batteries for industrial applications.

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