After 38 years as a publicly traded company, Altech will terminate its listing on the JSE on 20 August, provided it gets the support of shareholders for the move, the technology group, which is controlled by Altron, said on Thursday.
Last month, Altron announced that it intended to buy out minority shareholders in Altech and to terminate the company’s listing. Altron is led by Robbie Venter, while Altech is headed up by his brother, Craig Venter. The pair are the sons of Bill Venter, who founded Altron in 1965.
The offer to Altech minorities had been widely expected and is the second time in six years that Altron has attempted to acquire the shares it doesn’t already hold and delist the company. The last time, however, the deal was shot down by, among others, government’s pension fund administrator, the PIC. However, at the same time, Altron successfully bought out minorities and delisted another of its subsidiaries, IT group Bytes.
Altron has offered R47,50 in cash for each Altech share. Alternatively, Altech shareholders may elect to receive all or part of their consideration in the form of Altron preference shares in a ratio of 2,22 Altron shares per Altech share.
News of the proposed delisting sent Altech’s share price soaring by more than 30%. Analysts have described the offer as fair.
A meeting of Altech shareholders will be held on 26 July to consider and, if deemed fit, pass, with or without changes, the resolutions required to approve the scheme. The results of the meeting will be published via the JSE’s news service.
If the scheme is approved, the last day to trade in Altech shares will be 8 August. Trade in its shares will be suspended on the morning of 12 August. Termination of the listing of Altech’s ordinary shares on the JSE is expected to take place at the commencement of trade on 20 August. The company’s shares were floated on the JSE in 1975.
Altech’s subsidiaries include vehicle tracking business Netstar, cellular service provider Autopage Cellular and decoder manufacturer UEC. — (c) 2013 NewsCentral Media