Cautionary notices issued by Allied Electronics (Altron) and Power Technologies (Powertech) have sparked speculation that Altron is to streamline its structure further.
The notices, published simultaneously yesterday on the JSE`s news service, SENS, say only that "certain initiatives" are being considered.
Altron, which owns 59.2% of Powertech, began restructuring its shareholding portfolio last year. Moves have included proposals to sell its 3.2% stake in Voltex, along with Powertech`s 28.8% holding in the company, to Bidvest.
Altron has said that the sale of the Voltex stake is in line with a broader strategy to simplify the Altron group structure.
It has also previously announced proposals to buy out minority shareholders of Autopage and Fintech as part of the same strategy.
Powertech consists of two main business divisions involved in power, telecommunication and data cables; power and distribution transformers; electrical accessories, energy management and energy control products; lighting and ancillary products; automotive and industrial batteries.
Market players are speculating that yesterday`s cautionary notices will precede an announcement that Altron is to offer to buy out Powertech minorities.
While the Altron share was unchanged at 790c on the JSE this morning, the speculation pushed Powertech`s share up 5.88% or 20c to 360c by late this morning.
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