Craig Venter, the executive director in the Altron Group, says the company maintained constructive relationship with Strive Masiyiwas’s Liquid Telecommunications Holdings while it lasted.
“We have enjoyed a very constructive relationship with Liquid over the past eighteen months, since we first started our negotiations on our East Africa disposal and we will continue to explore mutually beneficial opportunities with them, in Africa,” said Craig Venter the CEO of Altron TMT.
His statement come after Altron announced last week that its subsidiary, Altech, will dispose of its 8.6% stake in Liquid.
“Altech acquired the 8.6% stake as part of the disposal of its East African operations to Liquid in February 2013. The aforementioned agreement included a put option for the greater of US$50 million or fair market value of the shares,” said the company.
An announcement on Friday 10 January 2014 confirmed that the put option had been exercised by Altech and the value of the stake was agreed between the parties at US$55 million. The consideration is payable to Altech on 28 February 2014.”
The group said “Following the delisting of Altech, Altron established the new Altron TMT division which consists of both the Altech and Bytes businesses. The new division aims to consolidate the telecommunications, multi-media and IT assets in the group, grow revenues and minimise costs.”
Robert Venter, Chief Executive of Altron said “Our investment philosophy is to have significant stakes in businesses. Although the investment in Liquid was performing very well, our 8.6% was not a significant stake and we believe the funds can be more effectively applied elsewhere.”
Robert Venter said the divestiture from Liquid was not an indication that Altron does not see investment in Africa as a core part of its strategy. Altron has in fact grown its business into Africa through organic ventures and following its customers into the region.
“Our retail and banking customers have expanded aggressively into Africa and we remain their supplier of choice with regards to IT and multi-media products and services,” said Robert Venter.
The company said Powertech, part of the Altron Power division has also established a business unit to service sub-Saharan Africa with power electronics such as cables, transformers and switchgear with recent significant orders received from Ghana and Zambia.
” The Altron group will continue to explore potential niche acquisitions and other opportunities to streamline the group.”
Powertech, part of the Altron Power division has also established a business unit to service sub-Saharan Africa with power electronics such as cables, transformers and switchgear with recent significant orders received from Ghana and Zambia.”
The Altron group will continue to explore potential niche acquisitions and other opportunities to streamline the group.”