Altron Limited announced a new Broad-Based Black Economic Empowerment (B-BBEE) initiative. This initiative aims to create a sustainable ICT skills-focused education trust. The goal is to address the scarcity of ICT skills in South Africa and promote societal advancement.
New B-BBEE Ownership Transaction
Altron’s board of directors has approved a new B-BBEE ownership transaction. This transaction will culminate in the establishment of an ICT skills-focused education trust named “Ascent.”
Key Objectives:
- Create a sustainable funding structure.
- Maintain Altron’s B-BBEE rating.
- Complement existing B-BBEE initiatives.
Trust Incorporation and Purpose
The new trust, named Ascent, has been incorporated to align Altron’s transformation goals with B-BBEE legislation.
Salient Features of the Trust:
- Founded by Altron TMT Holdings Proprietary Limited.
- Trustee composition: 50% independent, 50% black, 25% black women.
- Chairperson will be independent and will not have a casting vote.
Principal Objectives:
- Promote B-BBEE ownership of the Altron Group.
- Increase access to ICT education opportunities.
- Advance sustainable transformation within the Altron Group and South Africa.
- Improve employment suitability through ICT skills development.
- Distribute benefits to qualifying beneficiaries with household incomes below R600,000 per annum.
Transaction Structure
The Trust will hold a 20% ordinary share interest in a newly formed entity, Altron South Africa Holdings Proprietary Limited (HoldCo). HoldCo will own 100% of Altron TMT SA Group Proprietary Limited (TMT SA).
Key Components of the Transaction:
- Altron TMT Holdings will hold 80% in HoldCo and its subsidiaries.
- TMT Holdings will exchange its shares in TMT SA for redeemable preference shares in HoldCo.
- Foundation Holdings will acquire HoldCo shares at nominal value without raising acquisition funding.
Conclusion
Altron CEO Werner Kapp emphasized the company’s commitment to solving real-world problems and tackling youth unemployment through ICT skills development. The Ascent trust will offer bursaries and foster an innovation ecosystem.