ALLIED ELECTRONICS CORPORATION LIMITED - Declaration announcement in relation to the distribution of Bytes Technology Group plc Convertible Notes

            
AEL
Declaration announcement in relation to the distribution of Bytes Technology Group plc Convertible Notes

ALLIED ELECTRONICS CORPORATION LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1947/024583/06)
Share code: AEL
ISIN: ZAE000191342
("Altron" or "the Company")

NOT FOR DISTRIBUTION, PUBLICATION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR
IN PART, IN, INTO OR WITHIN THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH
THE DISTRIBUTION, PUBLICATION OR RELEASE OF THIS ANNOUNCEMENT WOULD BE
UNLAWFUL.

DECLARATION ANNOUNCEMENT IN RELATION TO THE DISTRIBUTION OF BYTES TECHNOLOGY GROUP PLC CONVERTIBLE NOTES

1    INTRODUCTION

Altron shareholders (Altron Shareholders) are referred to the firm intention announcement released by
the Company on SENS on 2 November 2020 (Firm Intention Announcement) containing the details of the
demerger of Bytes Technology Group Limited (now named Bytes Technology Limited) (Bytes UK) from
Altron and the separate listing of Bytes Technology Group plc (together, the "Demerger").

In order to implement the Demerger:
    (i)     Bytes Technology Group plc will apply for admission of its entire issued and to be issued share
            capital to the premium listing segment of the Official List of the United Kingdom (UK) Financial
            Conduct Authority, to trading on the Main Market of the London Stock Exchange (LSE) and
            to the Main Board of the Johannesburg Stock Exchange (JSE) by way of a secondary inward
            listing (together, Admission);
    (ii)    Bytes Technology Group plc will pursue an offer for subscription for new ordinary shares in
            Bytes Technology Group plc; and
    (iii)   Altron will distribute the greater portion of its remaining interest in Bytes UK (through the
            Convertible Notes, as defined below) to ordinary Altron Shareholders (Altron Ordinary
            Shareholders).

On 2 November 2020 Altron entered into a share purchase agreement with, amongst others, Bytes
Technology Group plc and its newly established subsidiary, Bytes Technology Holdco Limited ("Bytes
Technology Holdco"), in respect of the sale of all its shares in Bytes UK to Bytes Technology Holdco
(SPA). On 3 November 2020, Bytes Technology Group plc executed a convertible loan note instrument
in respect of the unlisted, interest-free, unsecured, redeemable, convertible loan notes ("Convertible
Notes") which were issued to Altron's subsidiary, Bytes Technology Group Proprietary Limited (Bytes SA),
as consideration for its shares in Bytes UK (the SPA and the Convertible Notes together the Transaction
Agreements).

In terms of the Transaction Agreements, Altron, through Bytes SA, will dispose of all its interest in Bytes
UK to Bytes Technology Holdco, a wholly owned subsidiary of Bytes Technology Group plc (the Disposal).
Bytes Technology Group plc has issued 220,506,494 Convertible Notes to Bytes SA in settlement of the
purchase consideration due to Bytes SA for the Disposal.

Bytes SA and certain intermediate subsidiaries of the Company have distributed all the Convertible Notes
to Altron as distributions in specie in terms of section 46 of the Companies Act 71 of 2008, as amended
(Companies Act). Altron will in turn distribute the beneficial interest in approximately 91% of the
Convertible Notes (representing 200,877,173 Convertible Notes) to Altron Ordinary Shareholders by way
of a distribution in specie in terms of section 46 of the Companies Act ("Distribution"). Altron will retain
approximately 9% of the Convertible Notes (representing 19,629,321 Convertible Notes) in order to settle
dividends tax arising from the Distribution. Altron has estimated that the proceeds of the redemption of
approximately 9% of the Convertible Notes will be sufficient to settle dividends tax, however, the actual
liability for dividends tax will be determined after Altron Ordinary Shareholders submit declarations to Altron
in terms of section 64FA of the Income Tax Act 58 of 1962 (see paragraph 4 below).

Altron Ordinary Shareholders, who are on the Altron register at the Record Date for the Distribution (see
paragraph 3 below), will be entitled to 0.5 Convertible Notes for every 1 Altron ordinary share held
(Entitlement Ratio).

This announcement does not contain a complete description of the Demerger and does not contain all the
information that Altron Shareholders should consider in relation to the Demerger. For the detailed terms,
conditions, and rationale of the Demerger Altron Shareholders are referred to the Firm Intention
Announcement and the Circular. Capitalised terms not defined in this announcement shall have the
meanings given to them in the Circular.

2    DECLARATION

On 19 November 2020, the Altron Board formally approved the distribution of the beneficial interest in
200,877,173 Convertible Notes ("Distributed Convertible Notes") as a distribution in specie to Altron
Ordinary Shareholders in terms of section 46 of the Companies Act. Altron will remain the registered owner
of the Distributed Convertible Notes.

Settlement of the Distribution is conditional upon (i) approval by special resolution of the Altron
Shareholders in accordance with section 112 and 115(2)(a) of the Companies Act for the Distribution at the
General Meeting to be held on 1 December 2020; and (ii) the issue by the TRP of a Compliance Certificate
in relation to the Distribution in terms of section 115(1)(a) and (b) (read with section 119(4)(b) of the
Companies Act) by 2 December 2020. Upon fulfilment of these conditions Altron will issue a finalisation
announcement.

The number of Convertible Notes in respect of which the beneficial interest will be distributed to Altron
Ordinary Shareholders was initially calculated based on the Entitlement Ratio and the issued share capital
of Altron as at the Last Practicable Date of the Circular. The number of Convertible Notes to be distributed
to Altron Ordinary Shareholders has increased relative to what was previously communicated to Altron
Ordinary Shareholders in the Firm Intention Announcement and the Circular due to a subsequent increase
in Altrons issued share capital from 401,321,820 to 401,754,346 as a result of Altron Ordinary Shares
vesting in various Altron employee share schemes. The increased issued share capital required Altron to
distribute a greater number of Convertible Notes to Altron Ordinary Shareholders in order to maintain the
Entitlement Ratio.

The Entitlement Ratio has not been affected as a result of the increase in Altrons issued share capital.
Instead, Altron will retain fewer Convertible Notes as principal to meet its dividends tax liability arising from
the Distribution.

3    IMPORTANT DATES AND TIMES
                                                                                                            2020

Record Date to determine which Altron Shareholders are entitled to vot e
at the General Meeting                                                                       Monday, 23 November

Last day to lodge an electronic participation registration form with TMS, by
10:00 on                                                                                   Thursday, 26 November

Last day to lodge forms of proxy, with TMS for administrative purposes ,
by 10:00 on                                                                                  Friday, 27 November

General Meeting to be held via electronic participation at 10:00 on                          Tuesday, 1 December

Last date and time for Altron Shareholders to give notice to Altron
objecting to the Disposal and Distribution in terms of section 164(3) of the   
Companies Act, by 10:00 on                                                                   Tuesday, 1 December

Results of General Meeting released on SENS on                                               Tuesday, 1 December

Finalisation announcement in respect of the Distribution released on
SENS on                                                                                    Wednesday, 2 December

Announcement released on SENS in respect of cash payment for
fractional entitlements                                                                    Wednesday, 2 December

If the Disposal and Distribution are approved by Altron Shareholders at the General Meeting and
the Suspensive Conditions are fulfilled or waived (where capable of waiver):

The following dates assume that no court approval or review of the Disposal or the Distribution is
required:

Last day to trade in Altron Ordinary Shares in order to be eligible to receive
the Distribution                                                                             Friday, 4 December

Altron Ordinary Shares trade ex the entitlement to receive the Distribution
on                                                                                           Monday, 7 December

Record Date for the Distribution                                                          Wednesday, 9 December

Distribution Election Date                                                                Wednesday, 9 December

Settlement date for the Distribution (Altron to hold Convertible Notes as
nominee for Altron Ordinary Shareholders)                                                 Thursday, 10 December

Admission of the Bytes Technology Group plc Shares to the LSE and
commencement of unconditional dealings in Bytes Technology Group plc
Shares on the LSE at 8:00 (London time) on                                                Thursday, 17 December

Admission of the Bytes Technology Group plc Shares to the JSE and
commencement of unconditional dealings in Bytes Technology Group plc
Shares on the JSE at 10:00 on                                                             Thursday, 17 December

Settlement for conversion of Convertible Notes                                            Thursday, 17 December

Payment date for redemption of Convertible Notes                                         Wednesday, 23 December

Fractional entitlement payment date                                                      Wednesday, 23 December

The following dates assume that court approval or review of the Disposal and Distribution is
required:

Last day for Altron Shareholders who voted against the Disposal and/or            5 Business Days after the
the Distribution to require Altron to seek court approval for the Disposal        General Meeting, currently
and/or the Distribution in terms of section 115(3)(a) of the Companies Act,      anticipated to be Tuesday, 8
if at least 15% of the total votes of Altron Shareholders at the General                   December
Meeting were exercised against the Disposal and the Distribution on

Last day for Altron Shareholders who voted against the Disposal and/or           10 Business Days after the
the Distribution to apply to the court for a review of the Disposal and/or       General Meeting, currently
the Distribution in terms of section 115(3)(b) of the Companies Act on           anticipated to be Tuesday,
                                                                                        15 December
Notes:
1.   All times shown in this announcement are South African Standard Time unless otherwise stated.
2.   All dates and times are subject to change by Altron (subject to the approval of the JSE and/or TRP, if
     required). Any material change will be released on SENS and published in the South African press.
3.   Forms of proxy must be lodged with TMS at email proxy@tmsmeetings.co.za, as soon as possible,
     but by no later than 10:00 on Friday, 27 November 2020. The forms of proxy may also be handed to
     the Chairman at any time before the commencement of the General Meeting by email to the Altron
     Company Secretary at wkgroenewald@altron.com.
4.   Altron Ordinary Share certificates may not be rematerialised or dematerialised between Monday, 7
     December 2020 and Wednesday, 9 December 2020, both days inclusive.
5.   The dates have been determined based on certain assumptions regarding the dates by which certain
     Altron Shareholder and regulatory approvals will be obtained and that no court approval or review of
     the Disposal and/or Distribution will be required. If the relevant dates change and the dates set out
     above are therefore impacted, details of the relevant change will be released on SENS and published
     in the South African press.
6.   If the General Meeting is adjourned or postponed, forms of proxy submitted in respect of the General
     Meeting will remain valid in respect of any adjournment or postponement thereof.
7.   Admission of the Bytes Technology Group plc Shares to the JSE and commencement of
     unconditional dealings in Bytes Technology Group plc Shares on the JSE will commence at 10:00am
     instead of 9:00am in order to align with the admission time on the LSE and facilitate a simultaneous
     listing on both exchanges.

4    ALTRON SHAREHOLDERS DIVIDENDS TAX DECLARATIONS AND UNDERTAKINGS

Altron Shareholders are strongly encouraged to duly complete and sign the relevant required Form of
Declaration and Undertaking (as applicable), which forms were attached to the Circular and are available
at www.altron.com/investors/notices-circulars/, and submit same to Altron before 23:59 on Tuesday, 8
December. Failure to submit the required Form of Declaration and Undertaking to the Company will
increase the dividends tax liability of Altron as a result of the Distribution, which may have an adverse
impact of the value of the Altron Ordinary Shares after Admission.

If you are the registered holder of the Altron Ordinary Shares but not the beneficial owner or the duly
authorised agent of the beneficial owner, kindly procure that the beneficial owner duly completes and signs
the required form of Declaration and Undertaking (as applicable), which forms were attached to the Circular
and are available at www.altron.com/investors/notices-circulars/, and submit such completed and signed
Form of Declaration and Undertaking by the beneficial owner to Altron before 23:59 on Tuesday, 8
December.

If you are exempt from dividends tax
You should complete Form I of the Forms of Declarations and Undertakings and return such form to Altron
in the manner set out in that form to be received by no later than 23:59 on Tuesday, 8 December.

If you are subject to dividends tax at a reduced rate
You should complete Form II of the Forms of Declarations and Undertakings and return such form to Altron
in the manner set out in that form to be received by no later than 23:59 on Tuesday, 8 December.

Johannesburg
20 November 2020

Financial Advisor and Transaction Sponsor
Rand Merchant Bank, a division of FirstRand Bank Limited

Legal Advisor
DLA Piper

IMPORTANT NOTICE
This announcement is an advertisement and does not constitute a prospectus in connection with an
offering of securities. These materials may not be published, distributed or transmitted by any means or
media, directly or indirectly, in whole or in part, in, into or within the United States. These materials do
not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Securities
may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of
1933, as amended (the "Securities Act"), or (ii) an available exemption from registration under the
Securities Act. The securities mentioned herein have not been, and will not be, registered under the
Securities Act and will not be offered to the public in the United States.

The announcement does not constitute an offer for the sale of or subscription for, or the solicitation of
an offer to buy and subscribe for, securities to the public as defined in the South African Companies Act,
2008 (the "SA Companies Act") and will not be distributed to any person in South Africa in any manner
which could be construed as an offer to the public in terms of Chapter 4 of the SA Companies Act. These
materials do not, nor are they intended to, constitute a prospectus prepared and registered under the SA
Companies Act. Nothing in these materials should be viewed, or construed, as "advice" as that term is
used in the Financial Markets Act, 2012 and/or the Financial Advisory and Intermediary Services Act, 2001.
This announcement and any offer if subsequently made is and will only be addressed to and is and will
only be directed at persons in South Africa who fall within one of the categories listed in section 96(1)(a)
and/or (b) of the SA Companies Act.

This announcement may include statements that are, or may be deemed to be, "forward -looking
statements". These forward-looking statements may be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-
looking statements may and often do differ materially from actual results. Any forward -looking
statements reflect Altron's current view with respect to future events and are subject to risks relating to
future events and other risks, uncertainties and assumptions relating to Altron and/or Bytes Technology
Group plc's business, results of operations, financial position, liquidity, prospects, growth and strategies.
Forward-looking statements speak only as of the date they are made. No representation or warranty is
made that any forward-looking statement will come to pass

Date: 20-11-2020 03:06:00
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