1 April 2008 – The Competition Tribunal gave their unconditional approval of a transaction that will see Powertech, a wholly-owned subsidiary of the JSE listed Altron Group, buy an additional 50% shareholding in its joint venture company ABB Powertech Transformers for a consideration of US$40 million.

Claussen

Norbert Claussen,
CEO of Powertech

Powertech and ABB’s intention through the shareholding restructure was to facilitate the entry of an empowerment partner to the power transformer company. The negotiations with Powertech’s group BEE partners for a 25.1% stake are well progressed and announcements regarding this transaction will be made in due course.

The power transformer company will in future be known as Powertech Transformers.

It will continue its business activities as the largest power transformer manufacturer on the African continent and as the only transformer company that manufacturers the entire range of power transformers in Sub-Sahara Africa, ranging in size from 20 MVA to 795 MVA.

ABB has agreed to sign a technology agreement with Powertech Transformers. This will allow the company to maintain their leadership position through access to ABB’s power transformer technology.

Norbert Claussen, CEO of Powertech, commented, “We are very pleased that together with ABB we have found a good solution to accelerate the transformation process in our transformer subsidiary. Ultimately this will also benefit our customers and we will continue to strive for best customer service at all levels in our transformer business.”