A Bytes Technology Group subsidiary has paid R43.59 million to buy Altron Finance`s preference share in Technologies Acceptances Receivables (TAR), as well as a loan made to TAR by Altron Finance.
The book value of the participation loan and participation loan facility was R24.36 million, while the BTG subsidiary, Bytes Corporate Services, paid R19.23 million for the preference share.
The effective date of the deal is 1 March.
TAR is the primary asset financing vehicle which provides, if needed, financing to customers who buy products from various BTG operations.
The group says a closer association with TAR, as well as an investment in the company, will provide better opportunities to attract new business.
At the same time, the investment will improve customer retention by various operations and lessen the risk of losing business to competitors when financed deals reach the end of their agreed term, it adds.
It says the total R43.59 million was paid to Altron Finance on 15 April in cash.
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