Powertech in deal with Kagiso
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Trade and Industry Correspondent
ALTRON subsidiary Power Technologies (Powertech) has sold 25,1% of subsidiary Battery Technologies to Kagiso Trust Investments for an undisclosed sum, the groups announced yesterday.
Battery Technologies is one of SA's leading suppliers in the specialised field of stationary back-up power systems to the information, communication and technology (ICT) sector.
Afzal Patel, a Kagiso group executive, said the deal represented a natural partnership for Kagiso in its expansion into the ICT sector.
Powertech said that with an annual turnover of about R100m, Battery Technologies was "a very sizeable entity" in the context of the domestic economy. It was hoped the new venture would bring further growth to Battery Technologies.
The deal became effective yesterday, after Kagiso's earlier purchase of an initial stake of 20%. This was followed by another stake of 5,1 %. Powertech will retain its majority stake of 74,9% in Battery Technologies.
Powertech CEO Norbert Claussen said Kagiso had impeccable credentials and an extensive business network based on relationships with some of Battery Technologies major customers.
"Given their involvement in other operations and their numerous investments, Kagiso will also be able to contribute their financial and operational expertise, thereby adding substantial value to the business," he said.
Kagiso Trust Investments is the investment arm of the Kagiso Trust, a nonprofit organisation in the field of finance and management of community-based development projects.
The bulk of Powertech's annual turnover of more than R3,7bn is generated by its cable business.
Mar 02 2004 07:33:17:000AM Carli Lourens Business Day 1st Editi
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