Allied Electronics, a major player in the South African consumerelectronics market, has formally offered to purchase all the share capital in Allied Technologies Limited that it does not already have in its portfolio.
Altron said that it would be making a cash offer of 47.50 rand per share. This would drive Altech's share prices to 45 rand or a 30% premium over share value at trade closing.
The move is said to be Altron's way of simplifying the group's corporate operations structure and 'create a single listed point of entry into the Altron Group.'
Altech, on the other hand is a telecomunications and information technology company that had reported a 23% fall in earning this year. It also announced that there would be no dividend issued to shareholders in order to conserve its meager cash resources.
Altron share prices fell by 1.3% in late afternoon trading at the Johannesburg bourse. This fall was much lower than the All-share index that declined a mere 0.04% overall.
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