JOHANNESBURG, May 17 (Reuters) - South Africa’s Allied Electronics (Altron) said on Friday it had made a firm offer to acquire all of the share capital in Allied Technologies Limited (Altech) it does not already own.
Altron said in a statement it would make a cash offer of 47.50 rand a share, driving Altech’s share price up more than 30 percent to 45 rand.
Altron said the proposed transaction would simplify the group’s corporate and operating structure and “create a single listed point of entry into the Altron Group.”
Altech is a telecom and IT firm which last month posted a 23 percent decline in year earnings and declared no dividend to conserve its cash resources.
Altron’s share price was 1.3 percent lower in late afternoon trade in Johannesburg, underperforming the All-share index which was down just 0.04 percent. (Reporting by Ed Stoddard; Editing by Stella Mapenzauswa)