Allied Electronics Corporation (Altron) has paid R255.9 million for a further 7.6% stake in subsidiary Allied Technologies (Altech).
Altron previously had a 53.4% shareholding in Altech, a hi-tech telecommunications, multimedia and IT solutions group.
Altron says the acquisition of the additional 8.05 million shares at R31.80 each on the open market was funded from its available cash resources.
At the end of February, Altron had R2 billion in net cash and cash equivalents on its balance sheet.
"Given the group`s substantial cash resources, the directors were of the opinion that this represented an opportunity to invest further in a core business activity," it says in a notice to shareholders.
It adds that based on its results for the year to 29 February, the pro forma effects of the acquisition on Altron`s earnings, headline earnings, net asset value (NAV) and tangible NAV were not material.
The Altron and Altech share prices were unchanged at R12.20 and R31.80 respectively on the JSE this morning.
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