Struggling family-owned tech group Altron has announced a company owned by former executive of private equity firm Brait as strategic partners for the business. By Staff Writer
Value Capital Partners, which was co-founded by Antony Ball and Sam Sithole – ex-CEO and CFO respectively of Brait, will invest R400 million of capital into ailing Altron.
Both Ball and Sithole would join the board of Altron as non-executive dirtectors.
The cash would be utilised to accelerate Altron’s growth initiatives in its core IT operations.
Under the terms of the agreement, Altron’s current family control structure will be unwounded.
As part of the transaction, Dr Bill Venter – the founder of Altron – and his family would stop to hold outright control over the company and would dilute their current voting rights to 25.1% from 57%.
Both Altron and VCP have secured in-principle support of the transaction from 82% of the A shares and 76% of the N shares of the IT company shareholders, which rep[resents 83% of the voting rights. Altron also said that Dr Venter is fully supportive of the proposed deal.
