A regulatory agency in Zimbabwe is holding up the sale by Altron of its Altron Document Solutions (ADS) subsidiary to Bi-Africa Investment Holdings subsidiary Xerotech.
JSE-listed Altron announced the sale of the sub-Saharan African Xerox distributor – which is the world’s largest distributor of Xerox equipment – back in March. ADS had been held for sale by Altron, which had deemed the business to be non-core, for some time prior to the announcement of the agreement.
“The decision to dispose of the ADS business will result in a greater focus on Altron’s core ICT businesses that remain in the portfolio of companies,” Altron told shareholders in March.
ADS has represented Xerox in South Africa and the broader sub-Saharan African region for more than 20 years. The company also distributes Duplo finishing equipment and Fujifilm inkjet production machines.
The sale of the business, which had been expected to be concluded by no later than 31 August 2022, has now been held up bureaucrats north of the border.
“The parties [to the sale agreement] are awaiting regulatory approval from the Zimbabwe Competition and Tariff Commission. As a result, the parties have agreed to extend the fulfilment of the conditions precedent to 28 February 2023,” Altron said on Wednesday.
For the six months ended 31 August 2021, ADS (inclusive of its subsidiary Genbiz, which is also being sold) generated revenue of R500.1-million, earnings before interest, tax, depreciation and amortisation of R5.2-million, operating profit of R400 000 and an attributable loss after tax of R11.2-million.
The net proceeds from the deal will be applied to reduce the debt on Altron’s balance sheet. – © 2022 NewsCentral Media