Power Matla (Pty) Limited, Power Matla Transformers Pty Ltd and SGB-SMIT Management GmbH agreed to acquire 80% stake in Powertech Transformers from Allied Electronics Corporation Limited (JSE:AEL) on November 15, 2017. The buyers will purchase 80% interest and the balance of financing provided to Powertech Transformers as at the closing date for a nominal consideration subject to working capital adjustments. SGB will advance a ZAR 250 million loan to Powertech to pay off its ZAR 250 million loan to Altron Group. As of August 31, 2017, Powertech Transformers reported net assets of ZAR 110 million. The deal is subject to certain conditions like the successful conclusion of service contracts with key staff and key management of the Powertech Transformers group, as appropriate; granting of any regulatory approvals which may be required in relation to the transaction to the satisfaction of the parties; consent for the change of control of Powertech Transformers by its material suppliers and customers; that no material adverse change occurs between the signature date of the agreement and the closing date; registration of the transaction by the B-BBEE Commission and acceptance that Powertech Transformers is majority black-owned under the B-BBEE Codes of Good Practice; finalization of various agreements between the consortium members; and unconditional approval of all terms and conditions of the transaction by the boards of Altron, SGB-Smit and Power Matla. the transaction is now unconditional in accordance with the terms of the SPA. The deal is expected to close on the effective date of July 31, 2018. The transaction will become effective following the fulfillment of the last of the conditions precedent set out below and as detailed in the agreement. As on April 4, 2018, meaningful progress has been made with regard to the fulfillment of the conditions precedent to the transaction. The last of the conditions precedent is expected to be fulfilled by May 31, 2018. The consideration will be used to reduce the overall Altron group debt. gibson dunn & crutcher llp acted as legal advisor to SGB-SMIT Management GmbH