Allied Electronics Corporation Limited (JSE:AEL) agreed to spin-off Bytes Technology Group Ltd. on April 2, 2020. Transaction includes unbundling of the remaining Allied Electronics’ shareholding in Bytes UK, post the potential share offering to Allied Electronics’ shareholders. Transaction also includes constituting an independent Board of Directors for Bytes UK, the separation of Bytes UK from all group functions, concluding arrangements with the Bytes UK’s management team consistent with an independent company, and separating all Bytes UK’s operational functions to ensure a standalone operational business. Upon completion, Bytes UK will be listed on London stock exchange, with a secondary listing on the Johannesburg stock exchange. The first step in the demerger is Altron disposing of its shares in Bytes UK to newly formed entity Bytes Technology Holdco, and in return will receive convertible notes for the shares sold. The notes will be distributed in specie to Altron shareholders, subject to the group and subsidiary Altron Finance Pty Ltd keeping some of the notes to cover costs, taxes and settle some of its loan obligations. Bytes Technology Group will then apply for its shares to be admitted to trading in London and Johannesburg. While Allied Electronics will remain listed on Johannesburg stock exchange, it plans to demerge from its remaining investment in the UK. The record date for the distribution has been set to December 9, 2020. The demerger has been resolved by the Board of Allied Electronics. The demerger of Bytes UK is likely to take between nine to twelve months, depending on capital market conditions. If financial markets have not corrected by then, Allied Electronics Corporation may decide to hold off on Bytes UK’s demerger and its separate listing. As of November 2, 2020, Bytes Technology Group Ltd expects to be admitted to trading as a listed company on December 17, 2020. Rand Merchant Bank and Numis Securities Limited has been appointed as financial advisors for Allied Electronics. Allied Electronics Corporation Limited (JSE:AEL) completed the spin-off of Bytes Technology Limited on December 17, 2020. Bytes Technology Limited has been listed on Johannesburg Stock Exchange and London Stock Exchange. Peter Bradshaw, Benjamin Mbana, Nomfundo Skosana, Ebrahim Shaikh and Menzi Jali of DLA Piper and DLA Piper South Africa Services (Pty) Ltd acted as legal advisors for Allied Electronics.