Powertech`s R505 million acquisition of unbundled IST Group has received competition approval.Altron wholly-owned subsidiary Powertech has received approval from the Competition Commission to acquire IST Group.
Formerly listed on the JSE, the IST Group operates through seven divisions serving the energy, nuclear energy, telecommunications and defence industries. However, the R505 million Powertech acquisition will not include the company`s defence and nuclear divisions.
In June, Altron told shareholders its subsidiary had entered an agreement to purchase IST Group. It noted IST management had committed to re-investing a portion of the sale proceeds in Altron participating preference shares. Additionally, key executives had committed to three-year service agreements.
The five divisions that will be acquired by Powertech include Energy, Otokon, Data, Telecom and Industrial. These five divisions have a combined turnover of around R500 million per annum, said Altron.
The acquisition was subject to approval from the Competition Commission. On Friday, the commission recommended the Competition Tribunal approve this merger without conditions.