Altron is pursuing a new broad-based black economic empowerment (BBBEE) ownership transaction that will result in the launching of a sustainable information and communications technology (ICT) skills-focused education trust.

In a statement issued on Sens on Friday, Altron said that the transaction would be used to enhance the current employee value proposition by providing funding to qualifying employees' relatives and other stakeholders within the Altron ecosystem, giving them access to ICT-related education opportunities to address the increasing scarcity of ICT skills in South Africa.

“As South Africa's original technology brand, we are passionate about solving real-world problems, from the everyday to the epic. Businesses like ours can help tackle the very real problem of rising youth unemployment by bridging the skills gap and empowering young people for future jobs.

“I am proud to introduce Ascent – an ICT skills-focused education trust. Ascent will support young talent through bursaries and help foster an ecosystem of innovation and growth,” explained Altron CEO Werner Kapp.

The announcement outlined that the principal objectives of the trust would be to facilitate and promote the BBBEE ownership of the Altron Group and increase access to education opportunities to address the scarcity of ICT skills in South Africa.

It will also seek to advance sustainable transformation within the Altron Group and South Africa, while improving access to educational opportunities and support to cultivate critical and scarce ICT skills at the tertiary levels and improve suitability for employment.

The transaction has been structured to create a sustainable funding structure that is not solely reliant on external bank funding, share price appreciation or dividend payments.

It will also ensure Altron's South African subsidiaries maintain their current BBBEE rating and achieve full points on the BEE ownership scorecard with black ownership – along with other existing initiatives – exceeding 30% and complement existing BBBEE initiatives.

Salient features of the trust, of which Altron subsidiary Altron TMT is founder, include a trustee composition of at least 50% independent trustees, at least 50% black trustees and at least 25% black women trustees, with an independent chairperson.

The trust will obtain a 20% ordinary share interest, through its wholly owned subsidiary Altron Foundation, in a newly incorporated entity, Altron South Africa Holding Company (HoldCo), which will hold 100% of Altron TMT SA.

As such, Foundation Holdings will indirectly hold a 20% interest in TMT SA, while Altron TMT Holdings will hold the remaining 80% in HoldCo and its subsidiaries.

Altron TMT Holdings will dispose of its shares in TMT SA to HoldCo in exchange for cumulative, non-participating, redeemable preference shares in HoldCo, equal to the full market value of TMT SA.

The intra-group transaction will enable Foundation Holdings to acquire HoldCo ordinary shares at nominal value and without the need to raise acquisition funding and provide it with immediate ownership in HoldCo and indirectly all the assets and subsidiaries of HoldCo.

Subject to the fulfilment or waiver of conditions precedent, it is expected that the transaction will become effective by July 15, with the completion date no later than July 31.