Struggling technology firm Allied Electronics Corporation (Altron) announced on Monday plans to sell Powertech’s systems engineering business PTSI to Capitalworks for R140 million. By Staff Writer
The firm, which is exploring strategic equity and technology partnerships with global industry players in other areas of the business to revamp the company, said it has entered into a binding written offer with Capitalworks
Altron added that the disposal will exclude the businesses of Powertech QuadPro SA and Technology Integrated Solutions.
The firm said PTSI was no longer a core asset for the Altron group.
For the six months ended 31 August 2015, PTSI generated revenue of R205 million, an EBITDA loss of R7 million and a loss after tax of R13.6 million.
PTSI is a systems engineering business which operates predominantly in the power and energy sectors with customers that include power utilities and large power users in South Africa and Sub-Saharan Africa.
The deal is subject to approval by Capitalworks investment committee and other regulatory bodies in South Africa.
Altron will utilise the proceeded from all the sales to reduce its debt.
Last month, Altron announced plans to sell Powertech Transformers through a sale of shares in the next 12 months and may also sell some of its manufacturing operations. Power Transformers has been classified as held-for-sale and as a discontinued operation.
Powertech Transformers has been negatively impacted by a decline in orders from power utility Eskom.
Altron also announced that Autopage’s mobile subscribers would be sold for R1.5 billion to MTN, Cell C and Vodacom.
The company also announced the closure of Altech Node, which was seen by many commentators as ‘South Africa’s Netflix’ to compete against pay-TV operator MultiChoice and other video-on-demand services.
The sale of Powertech Transformers, Autopage and closure of Altech Node is part of Altron’s plans to restructure the group in preparation for a strategic equity partner.