Allied Technologies has announced a 25%-plus-one-share black economic empowerment (BEE) transaction in relation to Altech UEC Altech UEC’s primary business focus is the manufacture and provision satellite and terrestrial digital set-top box (STB) decoders.
The transaction has been entered into with a consortium of BEE partners consisting of Power Matla (the lead BEE partner), Epiworx Investment (Epiworx)and Empower a Thousand Holdings (EaT). These diversified black companies have an established history of adding value to their underlying investments while promoting the social and economic development of black people.
Craig Venter, Altech CEO, says the transaction is evidence of Altech’s commitment to transformation and empowerment.
"Altech’s transformation vision focuses on empowerment through skills enhancement, representative shareholding and widespread development of disadvantaged communities by focusing on areas with maximum long-term benefit," says Venter.
He says the transaction will result in a long-term sustainable relationship with its BEE partners, and create a platform from which all parties could participate in, and benefit from, the Altech UEC businesses.
"Government’s clarification on the DTT standard and the ICT industry’s recent interactions with Minister Roy Padayachie are clear indications that government recognises that ICT is the catalyst for economic growth in South Africa. This transaction is one example of Altech’s commitment to stimulating business opportunities and creating employment as part of the digital migration process and government’s overall job creation targets," he says.
Altech will form a new company (Newco) in order to acquire the Africa-based operations of Altech UEC. Newco will acquire the businesses on loan account.
This structure will enable Altech to sell to the BEE consortium a 25%-plus-one-share interest in Newco, via a company set up for this purpose (BEEco). The
shareholding in BEEco will be as follows:
* Power Matla – 65%
* Epiworx Investment – 20%
* Empower a Thousand Holdings – 15%.