JSE-listed Altech closed higher on Friday after news that it was in talks that could affect its share price.
Both it and parent company Altron issued statements to shareholders saying they were in talks, and urging shareholders to exercise caution when trading stock.
The groups did not provide further information, apart from indicating the discussions, if successfully concluded, could have a material effect on the share price.
Shares in Altech gained on the back of the news, closing 7.31%, or 263c, higher to end the day at R98.59. Altron's stock gained slightly, moving 0.88%, or 19c, higher to R21.69. The JSE's All Share index lost slight ground on Friday, moving from an open of 40 167 to close at 40 063.
Altech had been on the hunt for an acquisition to add to its Netstar offerings and grow the company geographically, possibly into Latin America. However, the entity put any deals to one side while it focused on sorting out its problems in Africa.
Altech recently disposed of its operations in East Africa to Liquid, in return for an equity stake, and has also exited its West African operations. Its partnership with Liquid Telecommunications will see the creation of the largest fibre network in Africa.
At the conclusion of the deal, CEO Craig Venter says the company's operations are now firmly on a path to success and growth. Altech East Africa was profitable for two years after Altech bought its 51% stake in 2008, but then ran into difficulties as key projects were delayed, while the competitive market moved ahead rapidly.
At the end of the first half of 2012, Altech wrote down the operation to nothing, after it made an operating loss of R89 million in the half year.
Earlier this year, Altech announced it had embarked on a realignment of its East Africa interests by redirecting its networking business into a strategic partnership with Liquid, an independent telecommunications group providing diverse services within central and southern Africa.
The company solved its West Africa issues last year after agreeing to sell its 75% stake in the operation to an unnamed party for an undisclosed amount.
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