JOHANNESBURG (03/11/2004) - Aberdare Cables (Pty) Ltd., a South Africa power and telecommunication cable manufacturer, and a member of the Altron Group of companies, Thursday announced the sale of 30 percent of its equity to a Black Economic Empowerment (BEE) grouping led by the newly established Izingwe consortium, in a transaction valued at approximately R165 million (US$25 million).
The Izingwe consortium is led by Izingwe, a new investment company which is chaired by Sipho Pityana; the Matomo Group under the leadership of Thozamile Botha; and a newly formed women's group, Hlumani-Kgolang Investments, headed by chairperson Thabisa Vili.
Says Sipho Pityana, a former director-general of Foreign Affairs: "The transaction to acquire 30 percent of Aberdare Cables is a significant market entry for Izingwe. It also complements the current strategic direction of Aberdare Cables and reinforces its drive for growth and competitiveness."
Commenting on the transaction, Pityana said that it was crafted to fit perfectly into the empowerment framework outlined by the Department of Trade and Industry. "This was made possible by Izingwe's capacity to deliver and implement transformation solutions and Altron's recognition of the importance of BEE to its growth, both locally, and in the international environment," says Pityana.
Chief executive of Aberdare Cables, Hans Meiring, says, "Aberdare enjoys a proud record of meeting BEE targets. Through this transaction we will deliver on our commitment to prioritize BEE, particularly in the areas of employment equity, skills development and training. It takes our BEE credentials to an unrivalled level in our industry."
Meiring says that Aberdare Cables is also committed to SMME development, job creation programs and productivity agreements with employees, to ensure world class manufacturing standards, as well as a visible commitment to corporate social responsibility.
Says chief executive of Altron and the chairman of Aberdare Cables, Robert Venter: "Our commitment to this deal and to BEE as a whole is reflected in the structuring of the partnership. The Izingwe consortium will have an immediate holding of 30 percent, and we are excited with the opportunity to work closely with all the members of the consortium. In recognition of his impeccable credentials, Sipho Pityana will become deputy chairman of Aberdare Cables."
Izingwe's strategy and advisory services business, Laetoli, which has a specialized division focusing on BEE, will be made available to Aberdare Cables in order to assist with the development, implementation and maintaining of this aggressive BEE undertaking. Laetoli's clients include among others, SARS, PIC and Nedcor.