Altech has announced a R1,5-billion BEE deal, involving 25% plus 1 share in relation to its wholly-owned Netstar subsidiaries Altech Netstar, Comtech and Altech Netstar Fleet Solutions.

Altech Netstar's primary business focus is providing stolen vehicle tracking and recovery services to subscribers within southern Africa, while Comtech and Fleet Solutions provide fleet management solutions.
"Transformation is a key focus area for Altech and Altech participates in opportunities which facilitate meaningful and sustainable growth for the business of Altech as well as for individuals in South Africa," the company says in a statement.
"In addition, Altech is committed to complying with the ownership requirements of the Department of Trade and Industry BEE Codes of Good Practice and its transformation vision focuses on empowerment through skills enhancement and widespread development of disadvantaged communities by focusing on areas with maximum long-term benefit.
"In this context, Altech has entered into the transaction with Thebe Investment Corporation and Identity Capital Partners."
Thebe is a diversified, black investment management company, while Identity Partners is a women-owned and -run investment firm.
"Altech believes that the transaction will result in a long-term sustainable relationship with the BEE partners and a platform from which both parties can participate in and benefit from the Netstar businesses," according to the statement.
In order to facilitate the transaction, Altech will create a new wholly-owned subsidiary, Newco. Altech will dispose of its shares in Altech Netstar at fair market value of about R1,5-billion to Newco and the consideration thereof will be settled by Newco issuing preference shares to Altech.
Altech Netstar will acquire the business operations of Comtech and Fleet Solutions out of the respective companies at fair market value of about R0,2-billion, and the consideration thereof will be settled via inter-company loans.
Accordingly Newco will have a net asset value of nil at inception.
After the restructuring, Altech will dispose of 25% plus 1 share in Newco to the BEE partners for a nominal value.