Brait, the investment and merchant banking group, said today it had entered into an agreement to acquire a significant minority investment in Computer Configurations Holdings Limited (CCH). At the same time CCH`s executive chairman, Mario Pinheiro, announced his intention to resign from the group, effective 15 May 2000.
Brait executive deputy chairman, Thierry Dalais, said the replacement capital investment was in terms of an arrangement between Pinheiro and CCH`s senior management team, led by CEO Aletha Ling. This has not resulted in any beneficial gains for any CCH executives. Although Pinheiro is leaving the group, he has retained a significant investment position in CCH.
Pinheiro said he had, for personal reasons, decided to leave CCH. Recent events surrounding insider-trading investigations have affected his health. This, together with the fact that he has achieved what he set out to do at CCH, and had put in place a strong management team under group CEO Aletha Ling`s leadership, led him to believe that it was the right time to leave the company.
Dalais said this was the second time that Brait had made an investment in CCH. At the time of the initial investment in 1996, Dalais said Brait and Pinheiro had agreed a forward plan for CCH, including its listing and future strategy. Dalais added that CCH`s normal growth pains had been exacerbated in recent months by a number of factors beyond the company`s control. Nevertheless, he said CCH was well positioned for future growth.
Dalais said, "When Mario invited Brait to reinvest in CCH, we were encouraged by CCH`s excellent management team and its strategies which competitively position the group for the future. CCH has undergone a difficult restructuring process and has now emerged as a more mature and focused company that is exposed to high growth industries." Brait has conducted a business review and is fully appraised of the short term challenges facing the group, as announced in today`s profit warning.
Ling said, "Mario leaves a sound legacy in CCH. We have built this management team over time and now have a strategic investment partner, a strengthened board and an exciting common vision for the future."
Brait is well known as a leading technology investor, having concluded a number of transactions in this sector and managing the R300m Brait Technology and Innovation Fund 1. Dalais said, "Our commitment to these new sectors of the economy has been in place for some time and we have the infrastructure, knowledge and skills to convert on these opportunities with our partners."
Headquartered in Johannesburg and employing over 1200 staff, CCH is an e-business systems integrator providing full service insourced and outsourced business solutions, comprising technology and professional services, principally to South African customers. It reported revenues of R470m for the year ending June 1999 and is targeting a significant increase for the year to end 30 June 2000.
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