Altron has made an offer to buy out the minority shareholders in its subsidiary Altech, the two JSE-listed companies announced on Friday.
The move sent Altech’s share price soaring by more than 30% on Friday afternoon, shortly after news of the offer was published.
The offer is being made through its finance arm. Altron has offered R47,50 in cash for each Altech share. Alternatively, Altech shareholders may elect to receive all or part of the consideration in the form of Altron preference shares in a ratio of 2,22 Altron shares per Altech share.
The offer price is 31,1% above the volume weighted average price of Altech shares traded on the JSE over the 30 business days up to 22 March, when the companies first cautioned shareholders that they were in talks.
This is the second time in the past six years that Altron has attempted to buy out Altech minorities and delist the company. But a proposal in 2007 was shot down by government’s pension fund administrator, the PIC, among other. It successfully bought out minorities and delisted another of its subsidiaries, IT group Bytes.
Altron says the deal, if it’s approved by shareholders, will create a single listed point of entry into the Altron group and simplify its corporate and operating structure.
If the deal goes ahead, Altron will apply to the JSE to terminate Altech’s listing. — (c) 2013 NewsCentral Media