Powertech, a subsidiary of Allied Electronics (Altron) has entered into a binding offer with Trinitas, whereby Powertech Industries will dispose of the Powertech Battery Group to Trinitas.
The salient terms and conditions of the proposed transaction are as follows:
* Trinitas has agreed to acquire the Powertech Battery Group incorporating the operating assets and liabilities of all the Powertech Batteries divisions within Powertech including Powerbat (Namibia), Webroy, Erf 2619 and Erf 2620 for a total cash consideration of R300-million calculated on an enterprise value basis (debt and cash free);
* The offer includes all of the operating assets and liabilities relating to the Powertech Battery Group (including inventory, trade and other debtors and trade and other creditors) and all client and supplier/vendor information, contracts and tangible/intangible assets;
* The proposed transaction will exclude Powertech’s equity interest in the Enersys joint venture, which pertains to batteries for industrial applications;
* Standard warranties and indemnities associated with transactions of this nature will be provided by Powertech;
* The proposed transaction will be subject to certain conditions precedent; and
* Trinitas will invite certain key senior managers of the Powertech Battery Group to, among others, sign service agreements following the effective date of the proposed transaction.
The Powertech Battery Group, manufactures and distributes a wide range of automotive batteries for the South African market, including Willard and Sabat Batteries.