ICT services outsourcer T-Systems SA yesterday concluded a black economic empowerment (BEE) deal, taking its empowerment equity shareholding to 30%.
The BEE consortium consists of T-Systems' long-standing shareholder African Renaissance Holdings (ARH) and Awari Investment Holding, an entity that is 100%-owned by black women.
Before the transaction, T-Systems' BEE shareholding stood at 25.1%, sold to ARH seven years ago, said T-Systems CEO Mardia van der Walt-Korsten at a media briefing. She stressed the latest transaction was not prompted by compliance with a charter or code, but by the need for T-Systems to be a "socially relevant" company in the modern SA.
"BEE is nothing new to T-Systems. Today, we've just taken it a step further," she said, adding the deal confirms the company's commitment to "real" empowerment, skills transfer and job creation.
Awari is the first black women-held networking company in SA, headed by Lerato Mashologu, an executive director with the CIDA Empowerment Fund.
Cash transaction
T-Systems declined to divulge the value of the deal, but confirmed the deal was not financed and was paid for in cash.
It said it would most likely not sell any further equity stakes, as its German parent company is happy with the local management structure and business performance.
Van der Walt-Korsten commented T-Systems SA is one of the best-performing subsidiaries of the T-Systems global group. She noted its long-standing support of BEE has become an example for other subsidiaries in places like South America, where local shareholding is being explored.
"T-Systems is a company of the future. It is a company that is in sync with the national agenda of this country. It is a company involved in what president Thabo Mbeki calls 'a nation at work'," said ARH chairman Dr Vincent Msibi.
Mashologu said: "We see the importance of empowerment as a socio-economic focus, but this is no arms-length deal. We believe this relationship will grow our mutual business interests in a meaningful way."
Share