Bytes demerger created R7-billion in shareholder value: Altron

Altron on Thursday successfully listed its former subsidiary Bytes Technology Group on the main board of the London Stock Exchange, with a secondary listing on the JSE.

With the listing, Altron has completed its demerger with Bytes — a complex transaction first mooted in April to unlock value for Altron shareholders.

The issue price of £2.70 per Bytes ordinary share resulted in a market capitalisation of £647-million (about R13-billion) on admission in the UK. The share price started trading on Thursday at £3.58, well above its issue price, and was at £3.48 shortly before 10am in London.

About 40% of the Bytes ordinary shares have been distributed to existing Altron shareholders and the remaining shares are held by investors located outside South Africa and by Bytes management.

“As a result of the demerger of Bytes, Altron shareholders will receive, after tax and transaction costs, a consideration of approximately £542-million (R10.9-billion) in the form of Bytes ordinary shares and cash,” Altron said.

“If this is combined with Altron’s current market capitalisation, excluding Bytes, of approximately R3.9-billion, Altron shareholders hold approximately R14.8-billion of value in Altron shares, Bytes shares and cash.”

Doubled

Prior to Altron announcing the demerger on 2 April 2020, Altron’s market capitalisation was R7.3-billion. “Through this transaction, Altron has created more than R7-billion of value for shareholders. A shareholder who has held Altron shares from the time of the initial announcement to the completion of the demerger would have seen the value of their holding double.”

The group said it has “demonstrated its ability to create significant value for shareholders with the execution of this highly complex transaction”.

“With the Bytes demerger now complete, Altron will continue to focus on its remaining businesses (‘Altron 2.0’) and drive the growth strategy it has communicated to the market. Altron 2.0 is a R7-billion-revenue business with a strong balance sheet and exciting prospects as it continues to leverage the growing need for digital transformation and data,” said CEO Mteto Nyati.  — © 2020 NewsCentral Media