Altron said on Wednesday that it has reached an agreement to sell its 80% stake in Powertech Transformers, one of its legacy businesses, for R250m.
The stake is being acquired by a consortium made up of European transformers manufacturer SGB-SMIT as well as local black-owned Power Matla Group.
“The disposal of Powertech Transformers is a step closer to the conclusion of the disposal process of assets that are no longer core to Altron’s business strategy,” said Altron CEO Mteto Nyati in a statement.
“Our decisions on the buyer of this asset were driven by several considerations,” he said. “Key among them were the commercial interests of Altron and those of South Africa.
“We needed to ensure that customers of Powertech Transformers, especially Eskom, which is a key driver of our economy, experienced high-quality and consistent — if not better — services during this change. For them, it should be business as usual.”
Power Matla has been an investor in Powertech Transformers for 18 years. “They are now in pole position to becoming black industrialists through a global partnership,” Nyati said.
The transaction is subject to several conditions as well as regulatory approvals. — (c) 2017 NewsCentral Media