Altech secures major deal
3 March 2008
Altech secures major deal:
Allied Technologies Limited (“Altech”) today announced that it has acquired a controlling interest in three subsidiaries of Kenya’s Sameer ICT group for US $85.2 million (approximately R650 million). The transaction, effective 1 March 2008, sees Altech acquire a 51% controlling interest in Kenya Data Networks Limited (KDN), Swift Global (Kenya) Limited (Swift) and Infocom Limited (Infocom).
“These acquisitions support our strategy of moving up the telecoms value chain, expanding our geographic presence in
“This acquisition provides Altech with the opportunity to participate in the high growth converged technology wave, which fits perfectly with our already stated TMT convergence strategy” added Venter.
KDN is the leading full service digital communications data operator in
Swift is a leading internet service provider in
Infocom offers broadband, internet and IT services in
“The acquisitions provide us with access to Sameer’s regional expertise,” says Venter, adding that Altech and Sameer have forged an alliance to pursue further opportunities in the region. “Through this acquisition, Altech avoids the so-called “J-Curve”, which involves major investments in capital expenditure to build a new start-up network and to apply or bid for scarce network licences. In this case we buy into an already existing network that has pervasive licences, which is generating substantial profits”.
Sameer Group is one of the most prominent businesses in
Altech will pay a total cash consideration of US $75 million for its 51% interest in KDN; Swift and Infocom. Of the total US $ 75 million, US $ 10 million will be held in escrow, pending achievement of an agreed combined profit after taxation of KDN, Swift and Infocom, for the twelve months ending 31 December 2008.
In addition, US $20 million in new capital will be injected into KDN, Swift and Infocom – 51% will be provided by Altech and 49% by Sameer and its associates. The total Altech cash outflow will accordingly be US $ 85.2 million, comprising the US $75 million for the acquisitions and the US $10.2 million cash injection.
The acquisitions follow the completion of a satisfactory due diligence of KDN, Swift and Infocom by Altech, approvals by the board of Altech, the South African Reserve Bank and by the relevant regulatory authorities in Kenya and Uganda.
Venter says “There is a strong cultural fit with Sameer, which like Altech is a family-owned group which is well regarded for its entrepreneurial approach and disciplined corporate governance”. “Our envisaged long-term partnership with Sameer which is a substantial group with significant skills and contacts in the region, gives us a strategic advantage making Altech the pre-eminent data operator in
Naushad Merali, the Group chairman of Sameer Group said, ”Partnering with Altech is in line with the Group’s policy to look for strong strategic partnerships with the aim of increasing the portfolio of products and services and improving the service quality offered. We identified Altech as the perfect fit for our Pan African strategy and expansion”.
Sameer Investments Limited is the holding company of a group of operating entities in
Besides its shareholding in KDN, Swift Global and Infocom, Sameer Group also has interests in Dimension Data Solutions and GSM operator, Celtel Kenya Ltd.
Outside of the ICT sector, Sameer Group has interests in the energy and power; construction; financial; transport; agriculture and dairy industries. Sameer also owns a substantial property portfolio, the most prominent of which includes an industrial park and export processing zone.
Outside of these acquisitions, Altech is pursuing other initiatives in its quest to become a prominent broadband network operator on the African continent. Altech has already acquired usage rights to world leading technology from Xiocom Wireless Incorporated (USA) and is in the process of establishing a greenfields network operation in
For more information please contact:
CHIEF EXECUTIVE OFFICER - ALTECH
TEL: (011) 715-9004
FAX: (011) 715-9045
CELL: 083 236 8000