Black empowerment group Pamodzi Investment Holdings has acquired 26% of Digicore, the JSE-listed vehicle tracking and fleet management products supplier, for an undisclosed sum.
The market value of the 56 million shares acquired by Pamodzi is about R24.1 million, based on Wednesday`s share price close of 43c.
Digicore MD Nick Vlok says that with Pamodzi as its partner, the company will be in a better position to grow its business in both the corporate and public sectors.
The deal will also open new doors in Africa, he says.
Digicore says the state is moving towards a situation where public sector contracts hinge on bidding companies being able to show some black equity participation.
"Digicore has established a strong presence in Europe, Pakistan, Australia and Singapore," it says. "Pamodzi, with its African network, will further assist Digicore with its expansion plans into Mozambique and the African continent."
Pamodzi executive director Sifiso Msibi says his company is excited to have tied up the investment.
"Digicore is fast establishing itself in the international markets," he says. "With its advanced technological systems and products, Digicore complements our niche interest in information technology and telecommunications."
He adds that the acquisition comes at a time when some commentators are saying that black empowerment is a spent force.
"Since [Pamodzi`s] formation some two years ago it has achieved an internal rate of return in excess of 50% per annum on funds invested."
Digicore`s share price was trading unchanged at 43c late on Thursday morning.
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