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Home Breaking News Altron shares dipped 3.7% on Autopage news

Altron shares dipped 3.7% on Autopage news

By Gugu Lourie

Shares in struggling technology firm Allied Electronics Corporation (Altron) fell 3.7% to R12.89 by 11am on Tuesday after the company said it was in advanced talks to sell the mobile subscribers of Altech Autopage.

The South African-based company, which is valued at more than R3.6bn, said on Tuesday that the decision to dispose of  Altech Autopage’s subscriber bases has been based on, among others, the impacts of the on-going Mobile Termination Rate reductions, as well as continued industry and consumer deflationary pressures.

“Accordingly this business has been classified as a discontinued operation for purposes of the company’s 2015 annual financial statements,” the company said on the JSE.

The stock has been under-performing on the Johannesburg bourse. Its shares lost 46% of its value in the past year, after dropping 26% in the past six months.

The announcement by Altron to sell Altech Autopage subscriber base comes after last months announcement that the performance of the Altech Node, which is owned by Altron’s TMT division, has not quite gone as planned on the market.

“Altron TMT is well advanced in terms of exploring alternative opportunities for this business,” Altron said late on Thursday without providing additional information,” Altron inform investors last month.

The demise of Altech Autopage will follow that of Nashua Mobile, which sold its subscriber base to MTN and Vodacom.

 

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