JSE-listed Allied Technologies (Altech) has pulled out of talks to buy a Kenyan IT firm.
The company this morning issued a statement to shareholders in response to speculation around its interest in unlisted Kenyan IT firm Symphony.
Altech says it was in discussions with the Da Gama Rose Group, which owns Symphony. “Altech has informed the Da Gama Rose Group that it will not progress with further discussions,” it says.
Earlier this month, Reuters reported that Altech was looking to buy Symphony for as much as $60 million. The wire service said the parties had been in discussions for several months and was almost at the end of the process.
Da Gama Rose has interests in different parts of the globe in IT, tourism, floriculture, financial services, garment manufacturing, printing and packaging, and real estate. Combined, its units account for over $300 million in annual sales.
Symphony is headquartered in Nairobi and also has operations in Uganda, Rwanda, Burundi and Ethiopia.
In September, Altech said it had replaced the entire management team at its East African operation, after yet another disappointing period.
In the first half of the year to August, the company reported revenue marginally up to R4.8 billion, from R4.78 billion a year ago. However, East Africa reported revenue down from R258 million to R173 million, and operating profit dropped to R1 million from R52 million.
At the time, CEO Craig Venter said corrective measures had been taken.
Share
