Bullish Value Capital Partners Ramp Up Investment In Altron Shares

TechFinancials calculates that in the past five months VCP has acquired more than 13 million shares valued at more than R200 million in Altron.

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Mteto Nyati CEO Altron
Mteto Nyati CEO Altron

Value Capital Partners (VCP), which was co-founded by Antony Ball and Sam Sithole – ex-CEO and CFO respectively of Brait, can’t seem to get enough of JSE-listed technology stock Altron.

Last March, VCP acquired a 15% stake in Altron for R400 million.

As part of its plans to shake up the business, VCP appointed Mteto Nyati as CEO of Altron.

Since then the business has been recovering and delivering value for shareholders driven by the One Altron strategy, which is anchored on organic growth, partnerships and selected acquisitions.

On Monday VCP, an activist investor bought more shares in Altron in the open market.

The company informed investors that Ball and Sithole have acquired 750 000 shares in Altron for R14.3 million.

Both Ball and Sithole have an indirect interest in VCP, which is the advisor of Peregrine Fund Platform, the registered investment manager for various funds advised by VCP.

TechFinancials calculates that in the past five months VCP has acquired more than 13 million shares valued at more than R200 million in Altron.

Generally, insiders buying more shares in their own company sends a bullish signal.

Altron logo
Altron logo

Accordingly, Altron with a dividend yield of 1.56%, has surged 50.4% year-to-date and climbed 28% in the past six months.

The investment by VCP has enabled the tech firm to device a winning strategy, make it more efficient, and now the company under Nyati’s leadership is focusing on driving shareholder value.

VCP is an investment company which holds minority positions in listed companies and acts as an engaged shareholder in those entities to drive maximum returns for all stakeholders.

The company is also invested in African Phoenix, Adcorp, PPC Cement, Novus Holdings and Sun International.

For more read: JSE Tech Firm Altron To Focus On Organic Growth After Selected Buys Boost 2018 Profit

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