The Venter family-controlled Altron group has made further progress in disposing of non-core assets, announcing on Tuesday the planned sale by subsidiary Powertech Industries of Powertech Battery Group to Trinitas Fund for R300m in cash.
The transaction, which must still pass regulatory muster and which is still subject to a due diligence investigation by Trinitas, excludes Powertech’s equity interest in the Enersys joint venture, which pertains to batteries for industrial applications, Altron said.
Powertech Battery Group manufactures and distributes a wide range of automotive batteries for the South African market. This includes the well-known battery brands Willard and Sabat Batteries. Its batteries are used for passenger and heavy duty vehicles as well as in the agriculture, leisure and marine markets.
For the six months ended 31 August 2016, Powertech Battery Group generated revenue of R481m, earnings before interest, tax, depreciation and amortisation of R31m and profit after tax of R24m.
R160m of the offer price is payable on the effective date of the transaction, with the remaining R140m linked to and conditional upon actual receipts of Automotive Production Development Programme income from the effective date, Altron said.
Trinitas must still conduct a “confirmatory” commercial, financial, legal and environmental due diligence investigation. This will be done before mid-December. The deal’s success is also subject to receiving Competition Commission and other regulatory approvals by end-February 2017.
The R300m to be paid by Trinitas will be used to reduce Altron group debt. — © 2016 NewsCentral Media