Altron subsidiary Powertech has concluded an agreement to purchase the 25% minority shareholder interest held by operating management in Cables de Comunicaciones Zaragoza.
Cables de Comunicaciones Zaragoza is Powertech's cable manufacturing subsidiary in Zaragoza, Spain. It manufactures copper telecommunications, instrumentation and railway signalling cables, and serves the Spanish and European markets.
Powertech will acquire the shareholding for 8.556 million euros (approximately R81 million), based on a structure agreed at the time of the initial 75% investment by Powertech.
Cables de Comunicaciones Zaragoza management has agreed to remain with the company for a minimum of three years to ensure ongoing continuity and performance of the business to support Powertech's offshore strategies, says Altron.
"The deal is earnings-enhancing to Powertech and will allow for further synergy to be exploited in the Iberian Peninsula," says Powertech COO Norbert Claussen.
"The purchase of management's shareholding also consolidates Powertech's investments in the Iberian Peninsula, allowing for easier access to funds and opportunities for further expansion of Powertech's offshore businesses."
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