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The Venter family-controlled Altron Group officially consisted of just two listed entry points as of yesterday. This comes as the delisting of Bytes Technology Holdings, through the buy-out of minorities by its parent, was implemented.
Altron has systematically consolidated its listed entry points to two from nine. Before Bytes, the last leg of this process had been the delisting of Powertech in June 2002.
The group had hoped to complete the process, by reducing the number of entry points for investors to just one, but minorities in its other listed subsidiary Altech, led by the Public Investment Corporation (PIC), voted against the simultaneous buyout and delisting of Altech late last year.
PIC chairperson Brian Molefe told Fin24 sister publication Finweek at the time that it did not disagree with the principle of consolidating the listings, but did not want to be offered low-voting shares.
Course of action
Altron said it would issue 8.5 million ordinary shares and 22.1 million participating preference shares - the latter are low-voting, but have a higher dividend yield - in payment of the Bytes buy-out and these shares would begin trading from today. Shareholders could opt for all Altron participating preference shares as payment for their Bytes shares, or some Altron ordinary shares.
CEO Robbie Venter said last year that the board would meet this month to discuss its various courses of action, which could include taking none at all, or restructuring the deal, but not "at all cost."
Group executive for corporate communications Salomé Brown said the board had not yet had its first meeting of the year, but would do so soon.
Redshaw still with Bytes
Although Bytes is no longer a listed entity, CEO David Redshaw said last year that he would continue at the helm of the company and had no plans for retirement.
Although Bytes continues to have minority shareholders - Kagiso Strategic Investments owns 27% - being taken more closely under Altron's wing should give the IT company greater firepower should any significant acquisition opportunities arise.
The possibility of Bytes making a renewed offer for Business Connexion (BCX) after Telkom failed to buy the leading outsourcer last year should not be discounted. Telkom had offered 925c to BCX shareholders, but the Competition Tribunal blocked the deal. BCX last traded at 515c.
- Fin24