African Cellular Towers, manufacturer of mobile phone tower parts, has sold 25.1% of its business to investment company the Tiso Group, as part of a BEE deal.
Tiso will buy out 92.7 million shares for between R116 million and R138 million in cash, depending on African Cellular Towers' performance when it reports its financial year-end in February and again in the next financial year.
According to the agreement, Tiso will pay using cash on hand, and African Cellular Towers will not have to provide any facilitation or guarantees. While the actual financing will only happen after financial reporting in February, the deal will take effect as of the end of January.
The AltX-listed business has been in discussions with a black empowerment partner since early 2007. Reports show the company took careful steps in its selection process - whittling out bidders over the last two years.
The company showed strong growth over the last year, reporting a 66% revenue increase, to R327 million, in its year-end report. Earnings per share were also strong, up 45%, to R45 million.
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