Altron changes hands
The Venter family hands over the reins to Venture Capital Partners in boost for minority shareholders
It is the end of an era for the Venter family’s decades-long reign at Allied Electronics (Altron) as it surrenders control. The group, which was founded by businessman Bill Venter 51 years ago, has reached an agreement with investment company Venture Capital Partners (VCP) that will see VCP own 15% of Altron and invest R400m in the business. The share price leapt 20% after the announcement, before closing 16.4% higher at R8.72. The Venter family retains its 17.8% economic interest in the business, but will reduce its voting rights to 25.1%, from its previous 57%. Venter and his son Robert Venter will step down as chairman and CEO of Altron respectively, but remain as nonexecutive directors. Anthony Ball and Sam Sithole, founders of VCP, will join the board as nonexecutive directors. Kaplan Equity Analysts MD Irnest Kaplan said the decision was good for shareholders and introduces a new era for the business. He said despite criticism against the family’s control of the business, they...
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