JSE-listed Allied Technologies (Altech) has entered into an empowerment deal, selling off a 25% stake, and one share, in three subsidiaries, for an undisclosed amount.
The subsidiaries are Altech Alcom Matomo, Altech Alcom Radio Distributors and Altech Fleetcall. Together, the three companies provide a range of radio communication and fleet management services and solutions to clients in the Southern African region.
Altech has entered the deal with Southern Palace Group of Companies, an industrial holding company with investments in telecommunications, transport, automotive, equipment manufacturing, steel and scrap metal recycling.
The listed company has created a new holding company for the Altech sub-group involved in the deal, and Southern Palace will acquire a 25% and one share equity stake in the holding company.
Altech CEO Craig Venter says the deal shows Altech's commitment to transformation in the local business environment. “Altech regards transformation as fundamental to the long-term development and stability of the South African economy.”
Venter says the transaction will result in a long-term and mutually beneficial relationship with Southern Palace. “Extending share ownership will accelerate transformation and build on the progress we have made across other areas of black economic empowerment. Each partner is able to add value while being complementary to each other in terms of their skills set and business record.”
“The new partnership will go a long way to positively impacting the South African radio communications environment,” says Southern Palace CEO Lucas Tseki.
Altech is currently in a closed period.
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