| Fri 8 Jun 2007, 8:43 | | ATN - Altron - Powertech expands services business |
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ATN ATNP
ATN
ATN - Altron - Powertech expands services business through acquisition of IST
Allied Electronics Corporation Limited
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code : ATN ISIN: ZAE000029658
Share Code : ATNP ISIN: ZAE000029666
("Altron" or "the company")
POWERTECH
Media announcement
7 June 2007
Powertech expands services business through acquisition of IST
Powertech, a wholly-owned subsidiary of Altron, today announced its agreement to
purchase IST Group (Pty) Limited (excluding its defence and nuclear division)
for a purchase consideration totalling R505m. The formerly JSE-listed IST is a
private company owned by management and Ethos Private Equity. Management has
committed in terms of this transaction to re-invest a portion of their proceeds
received from Powertech in Altron`s participating preference shares and key
executives have committed to three year service agreements. The transaction is
expected to be earnings enhancing at both Altron and Powertech levels.
IST, founded in 1980 as Integrators of Systems Technology, is based in Pretoria
and the five divisions being acquired employ some 300 people, most of whom are
engineers. It is a technology and solutions driven business that offers
engineering solutions to its customers in the power utilities, telecoms, mining
and materials processing industries.
The five IST divisions that will be acquired include Energy, Otokon, Data,
Telecom and Industrial. Some of the engineering applications and solutions
offered to its markets are turnkey substation development, energy management,
infrastructural operational support systems, telecoms access network solutions
and turnkey project management. These five divisions have a combined turnover
of around R500 million per annum. The deal is subject to certain conditions
precedent including the approval by the Competition authorities.
Norbert Claussen, Chief Executive Officer of Powertech, says: Bringing IST into
the Powertech group is in line with our strategy to create a significant service
business to complement our existing marketing and manufacturing businesses. The
acquisition of IST enables us to offer a complete package to our customers in
our chosen markets. This is of particular importance in the current buoyant
infrastructure, building and construction sectors. The acquisition furthermore
enhances Powertech`s human capital capacity and skills base."
The acquisition of IST will expand Powertech`s base of key principals, alliance
partners and customers through its longstanding association with major South
African corporations including, among others, Eskom, Telkom, Highveld Steel,
Sasol, Vodacom, the mining industry and municipalities. Key principals of IST
include multinationals such as General Electric, Tellabs, Amdocs, Plug Power and
others.
Powertech will continue to manage the IST business as an autonomous operation
alongside its four existing divisions, namely Cables, Transformers, Batteries
and Industrial.
Harry Coetzee, Chief Executive Officer of IST, says: My team and I are looking
forward to become a part of Powertech. Most importantly, Powertech`s BEE
credentials will significantly enhance the outlook for IST. Furthermore, we
expect Powertech to expand IST`s opportunities in the market and will allow us
to benefit from the economies of scale of being part of a bigger group." Harry
will join the Powertech Executive Committee as well as the Powertech board of
directors.
Robert Venter, Chief Executive of Altron, commented: "This acquisition furthers
our stated strategy for increasing our exposure to the growing South African
infrastructure markets in those segments aligned to our core Powertech business
and I welcome IST and its employees into the Altron fold."
ENDS...
Powertech, a wholly owned subsidiary of the JSE-listed Altron group, has an
annual turnover of over R6 billion and employs approximately 5,000 people. More
information on the Powertech group and all its subsidiaries is available on the
internet at www.powertech.co.za. Further information on IST can be found at
ist.co.za.
For additional information contact:
Robbie Venter - Chief Executive, Altron
Tel: 011 645 3662
Or
Norbert Claussen - Chief Executive Officer, Powertech
Cell: 083 230 4140
Or
Regula Niehus - Communications Manager, Powertech
Tel: 011 706 7184
Cell: 083 442 6777
7th June 2007
Johannesburg
Sponsor
Investec Bank
Date: 08/06/2007 08:43:38 Produced by the JSE SENS Department.
