| Thu 23 Jun 2011, 10:39 | | ALT - Allied Technologies Limited - Strategic investment in Altech |
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ALT - Allied Technologies Limited - Strategic investment in Altech
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
STRATEGIC INVESTMENT IN ALTECH
Shareholders are advised that Altech has entered into an agreement with
Intel Capital as part of a strategic collaboration in which Intel Capital
and Altech will explore various areas of collaboration in the
Telecommunications, Multi-Media and Information Technology ("TMT") sectors
to accelerate the adoption of broadband services in Africa.
1. THE PROPOSED TRANSACTION
Intel Capital have agreed to invest USD 5 Million in accordance with the
provisions of a convertible loan. The convertible loan has a term of 3 years
and will bear interest at a fixed rate calculated with reference to the 3-
year LIBOR USD swap rate plus 3% per annum, based on a 360-day year and
interest calculated on the basis of actual days lapsed.
Intel Capital have the option to convert the loan, together with all accrued
interest thereon, into Altech ordinary shares at any time between the first
anniversary of the date on which the convertible loan agreement becomes
effective and the third anniversary thereof or repayment of the loan (if
later) ("the Conversion Right"), or in the event of a default on the loan.
The Conversion Right would be based on the aggregate of the volume weighted
average traded price per ordinary share on the JSE over the 30 business-day
period ending on the date on which the convertible loan agreement becomes
effective (expected to be on or about 1 August 2011), plus a 5% premium
thereon.
2. RATIONALE
This investment will form part of an on-going strategic business
relationship which will explore various areas of collaboration in the TMT
sector across Africa and other applicable emerging markets.
3. FINANCIAL EFFECTS OF THE PROPOSED TRANSACTION
The proposed transaction will have no material effect on Altech`s earnings,
headline earnings, net asset value or tangible net asset value and,
accordingly, any such effect has, therefore, not been disclosed.
4. DIRECTORS` RECOMMENDATION AND RESPONSIBILITY STATEMENT
The board of Altech is of the opinion that the proposed transaction will
benefit shareholders and, accordingly, recommend that shareholders vote in
favour of the resolution(s) set out in the notice of general meeting.
5. GENERAL MEETING
A circular and notice convening a general meeting have been posted to
shareholders on 21 June 2011.
The general meeting will be held on Wednesday, 20 July 2011 at 16:00, or as
soon thereafter as the Annual General Meeting convened to be held at 15:00
on the same date has concluded, in the Boardroom, Altech Corporate Offices,
79 Central Street, Houghton, Johannesburg to consider and, if deemed fit, to
pass with or without modification, the resolutions necessary to authorise
the proposed transaction.
Johannesburg
23 June 2011
Investment Bank and Sponsor:
Investec Bank Limited
Date: 23/06/2011 10:39:01 Produced by the JSE SENS Department.
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