Released: 15th November 2017
JSE-listed Allied Electronics Corporation Limited (Altron) today announced that it has reached an agreement to dispose of its 80% interest in Powertech Transformers Proprietary Limited (Powertech Transformers) to a B-BBEE consortium comprising of Europe’s number one medium-sized manufacturer of transformers, SGB-SMIT, and local black-owned Power Matla Group. The transaction is valued at R250milion.
According to Mteto Nyati, Altron Chief Executive, the disposal of Powertech Transformers is a step closer to the conclusion of the disposal process of assets that are no longer core to Altron’s business strategy.
“Our decisions on the buyer of this asset were driven by several considerations, key amongst them were the commercial interests of Altron and those of South Africa. We needed to ensure that customers of Powertech Transformers, especially Eskom, which is a key driver of our economy, experienced high quality, consistent and if not better services during this change. For them it should be business as usual.”
“In SGB-SMIT, we have a partner that injects foreign direct investment into our economy and brings international expertise. Power Matla has a deep understanding of the Powertech Transformer business having been invested in it for the last eighteen years. They are now in pole position to becoming black industrialists through a global partnership,” Nyati added.
Solly Moloko, Power Matla Chairman, had the following to say about the transaction: “With our initial investment in Desta Power Matla in 1999 and later taking up shareholding in Powertech Transformers in 2009, we see this as a natural progression in acquiring the business together with our new partner SGB-SMIT. Powertech Transformers is a national asset and we look forward to continued support from our major customers within South Africa and the entire continent, thereby ensuring the long-term sustainability of the business for existing customers, suppliers and employees, while creating more jobs into the future.”
Jan Ölscher, CEO of SGB-SMIT, said, “Being close to our customers lies at the heart of SGB-SMIT Group. In this spirit, the investment into Powertech Transformers is a decisive step to extend our global reach and establish a local presence in Southern Africa. With our partner Power Matla, we will strengthen Powertech Transformers as the leading supplier of transformers in the region. We look forward to working with them and continuing our growth story together.”
The transaction is subject to conditions precedent, including regulatory approvals.