A deal which would have seen Altech subsidiary Altech Data acquire the IT businesses of Labat Africa has been called off after the parties failed to reach agreement on pricing.
In terms of the deal, announced in May this year, Altech Data was to buy 100% of South African Micro-Electronic Systems, 51% of Labat Traffic Solutions and 100% of Labat Africa Management Consulting.
The businesses were to be merged with Altech`s IT interests, all of which are held by Altech Data. Had the deal gone through, a consortium owning about 60% of Labat Africa would have reinvested its part of the proceeds to buy a 50.1% stake in the new merged entity.
A special purpose vehicle set up by Altech was to fund the outstanding balance of R39 million.
The deal would have created a significant black economic empowerment controlled IT service and solutions group in which Altech was to have a 49.9% shareholding with board control.
However, the groups say they could not agree on the price and the funding for the Altech Data businesses and have decided to terminate talks relating to the deal.
Labat Africa CEO Brian van Rooyen is currently overseas. Company secretary Mendel Sender says a due diligence exercise was undertaken and both parties were satisfied with that. The disagreement was solely with regard to the value of the Altech Data businesses.
Altech CEO Craig Venter is also out of the country. Enquiries were referred to director Peter Curle, who was out of the office this morning.
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