The strategic partnership between the Altech Group (Altech) and Liquid Telecommunications Holdings (Liquid) that will see the creation of the largest fibre network in Africa has been concluded. Altech announced today that all customary conditions precedent have been fulfilled, with board and regulatory approvals received.
Altech Group operations are now firmly on a path for success and growth, says Group Chief Executive Officer Craig Venter.
Although our initial foray into East Africa was immensely successful, as shareholders are aware, in recent years these activities have been problematic and unprofitable. I promised an effective solution and I believe the Liquid transaction opens a positive new chapter for Altech, in partnership with a group with proven expertise in its sector, says Altech CEO Craig Venter.
Earlier this year, Altech announced that it had embarked on a realignment of its East Africa interests by redirecting its networking business into a strategic partnership with Liquid, a highly successful independent telecommunications group providing diverse services within Central and Southern Africa.
To recap – Altech will contribute its East African network assets and has subscribed US$17-million in cash for an initial 8.6% equity stake in Liquid with shareholder voting rights of 10%, and the potential to further increase its shareholding in Liquid in the future. Altech will be entitled to one director on the board of Liquid.
Nic Rudnick, CEO of Liquid, comments: Altech is the perfect strategic shareholder. Its networking activities blend into the core competence of our group enabling us to apply our proven management expertise to accelerating our growth and expansion. We will also be able to broaden the diversity of our activities in the retail sector, where Altech has definitely proved its merit in the past.
Notes to editors:
About Allied Technologies Limited
Allied Technologies Limited (Altech) is listed on the Johannesburg Stock Exchange (JSE). The company focuses on the telecommunications, multimedia and information technology (TMT) industries. It has a global footprint in 14 countries and employs more than 4 000 people.
As a leading South African multibillion-rand group, Altech is involved in the design, development and convergence of telecommunications, multimedia systems and IT solutions.
For further information please contact:
Chief Executive Officer: Altech
Tel: +27 (0)11 715 9004
Shenanda Janse van Rensburg
Group Executive: Marketing, PR & CommunicationsAltech Head Office
Tel: +27 (0)11 715 9031
Mobile: +27 (0)84 777 1977
JSE code: ALT