| Wed 9 Mar 2011, 10:23 | | ALT - Altech Announces 25% Black Economic Empowerment Deal |
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ALT - Altech Announces 25% Black Economic Empowerment Deal
Allied Technologies Limited
Member of the Altron Group
Incorporated in the Republic of South Africa
(Registration number: 1946/020415/06)
Share code: ALT
ISIN number: ZAE000015251
("Altech" or "the company")
9 March 2011
ALTECH ANNOUNCES 25% BLACK ECONOMIC EMPOWERMENT DEAL
JSE-listed Allied Technologies Limited (Altech) is pleased to announce a 25%
+ 1 share Black Economic Empowerment (BEE) transaction in relation to three
of its subsidiaries: Altech Alcom Matomo (AAM), Altech Alcom Radio
Distributors (AARD) and Altech Fleetcall (Fleetcall).
Together the three companies provide a range of radio communication and fleet
management services and solutions to clients in the Southern African region.
The transaction has been entered into with Southern Palace Group of Companies
(Proprietary) Limited ("Southern Palace"), an industrial holding company with
investments in telecommunications, transport, automotive, equipment
manufacturing, steel and scrap metal recycling.
Altech CEO Craig Venter says the announcement of the deal is proof of
Altech`s commitment to transformation within the South African business
environment.
"Altech regards transformation as fundamental to the long-term development
and stability of the South African economy and is committed to ensuring that
broad-based black economic empowerment is pursued and implemented throughout
the company and we embrace the role it can play in helping to redress
historical racial imbalances in the economy of South Africa."
Venter says the transaction will result in a long term and mutually
beneficial relationship with Southern Palace.
"Extending share ownership will accelerate transformation and build on the
progress we have made across other areas of black economic empowerment. Each
partner is able to add value while being complimentary to each other in terms
of their skills set and business record."
Lucas Tseki, CEO of Southern Palace, says, "Southern Palace is proud to be
associated with the Altech Group and is confident that the new partnership
will go a long way to positively impacting the South African radio
communications environment."
More about the transaction
Altech has created a new holding company for the Altech sub-group concerned.
Southern Palace will acquire a 25% + 1 share equity stake in the holding
company.
The agreements governing the Transaction include limited warranties and terms
and conditions that are customary to transactions of this nature. The
effective date of the Transaction will be the first day of the month
following the month in which the last condition precedent in terms of the
agreements are fulfilled.
More about the affected companies
Altech Alcom Matomo (AAM) operates in the field of design, installation and
project management of turnkey two-way radio communication networks. The
company offers radio and telemetry products in the areas of digital radio
communications and specialised equipment.
These systems use products from the extensive Motorola system network range,
which includes Dimetra IP, Astro, SmartZone, Vortex and Moscad SCADA
solutions. A wide range of both digital and analogue Motorola mobile, base
station and portable radios are also available.
AAM has a longstanding association with Motorola, having signed a sole
distributor licence agreement in 1994. This relationship provides AAM with
direct access to the largest and most technically advanced radio and SCADA
systems operation that exists in the world today, coupled with the direct
support of Motorola`s formidable technical, commercial and financial backup.
AAM customers include all spheres of government (SAPS, City of Cape Town,
Botswana Police, Angola Police) and the heavy industrial and mining sectors.
Altech Alcom Radio Distributors (AARD) is a distributor of wireless radio
products and accessories. The company is the exclusive distributors of
Motorola two-way radios and ancillary equipment and software and is
Motorola`s top distributor for the Middle East and Africa region. AARD
provides a wide range of Motorola Professional, Commercial and Digital two-
way radios that cater for the diverse communication requirements of a broad
range of industries and environments.
AARD is also the Southern African distributor of CanopyTrade Mark, Motorola`s
innovative wireless broadband solution that allows for fast and inexpensive
delivery of high-demand technologies such as broadband Internet access, voice
over IP, video services, security surveillance and E1/T1 capabilities.
Altech Fleetcall is the leading commercial ICASA-licenced radio trunking
network operator in South Africa, providing services nationally from Cape
Town to Beit Bridge.
The company specialises in providing airtime services for wireless voice and
data communication for telemetry, dispatching, alarm monitoring, fleet
management, security and other voice and data applications throughout South
Africa. The company provides voice communications and control centre
solutions to the Gautrain Rapid Rail Link.
Fleetcall`s Radio Trunking Network utilises proven and tested Fylde
equipment, developed to the international standard MPT1327. The network is
engineered to provide all users the benefit of a virtual private network,
operating within a national grid.
Notes to Editors:
Allied Technologies Limited (Altech) is listed on the Johannesburg Stock
Exchange (JSE). It is focused on the Telecommunications, Multi-media and
Information Technology (TMT) industries and employs over 5000 employees in
South Africa and abroad.
As a leading South African multi-billion rand group, Altech is involved in
the design, development and convergence of Telecommunications, Multi-media
systems and IT solutions. There is a strong focus on the convergence of
these technologies and Altech is also entrenched in the arena of secure
technology solutions.
Southern Palace Group ("Southern Palace") is a black owned and managed
independent diversified industrial holding company with interests in numerous
well-established businesses. Southern Palace has built up a track record of
successful investment transactions over the past few years. It has a presence
in the Logistics, Distribution, Steel, Automotive, Manufacturing industries,
and Telecommunication. Some of its direct and indirect investments include
Reclamation Group, SCAW Metals, Huawei Technologies, Afrit Trailers, and MAN
Truck and Bus Centurion.
Its mission is to participate in business opportunities which will contribute
to the further economic growth of the country and, more importantly, to bring
Southern Palace`s specific expertise and other operational credentials to the
table. Therefore, the group actively participates in the day to day
operations of the businesses.
For further information please contact:
Craig Venter
Chief Executive Officer: Altech
Tel: +27 11 715 9004
Cell: +27 83 236 8000
E-mail: cventer@altech.co.za
and/or
Shenanda Janse van Rensburg
Group Executive: Marketing, PR & Communications - Altech Head Office
Tel: +27 11 715 9031
Mobile: +27 84 777 1977
Email: sjvrensburg@altech.co.za
www.altech.com
JSE code: ALT
Investment Bank and Sponsor: Investec Bank Limited
9 March 2011
Date: 09/03/2011 10:23:00 Produced by the JSE SENS Department.
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