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BL Premium reports that technology firm Altron has put a for-sale sign on one of its subsidiaries after it lost a lucrative Gauteng broadband network contract to MTN.
The share price of Altron shed more than 5% on Wednesday after it warned investors to expect a plunge in earnings in the six months to end-August. The group said it will have to let workers go after losing out on the next phase of the lucrative Gauteng Broadband Network (GBN) to provide fibre connectivity across the province. The company’s Altron Nexus subsidiary has had the contract since 2014. It said that having implemented both phase one and two of the project, there was an expectation it would also be awarded the third phase of the project. Altron confirmed on Wednesday that it had not received the third phase contract. “The fact that GBN phase 3 was not awarded to Altron Nexus has necessitated ... a full business review, including the associated operating model of Altron Nexus,” the company advised. Altron has set aside R11m for costs associated with the retrenchments. It classified Altron Nexus and its sister company Altron Document Solutions as held-for-sale in its books as it looks for buyers for the entities. The group also has to contend with the poor finances of the City of Tshwane, where it is subcontracted under a company called Thobela Telecom.
- Read the full original of the report in the above regard by Kabelo Khumalo & Nico Gous at BusinessLive (subscriber access only)
- See too, Netstar owner Altron crashes 12% after warning of hefty writedowns, at Fin24
Get other news reports at the SA Labour News home page