Black economic empowerment consortium Sifikile Investments has acquired a 30% stake in Siemens Business Services (SBS) for an undisclosed amount, but SBS CEO Robert G"ogele says SBS is worth "a couple of R100 million and the consortium paid fair value".
The two information and communication technology players intend to make a concerted drive into the sub-Saharan region.
G"ogele says the market can also expect another contract of over R1 billion in the next eight weeks. This follows a deal SBS signed with medical aid administrator Medscheme in May, worth over R1 billion.
Unihold sold its Unihold Business Solutions division to Siemens Southern Africa last year to form the SBS joint venture. As part of the deal, Unihold acquired a 40% stake in the new SBS.
Unihold has now sold 75% of its remaining 40% stake in SBS to the consortium led by Sifikile. This transaction will result in SBS becoming a 37.6% black-owned IT services business.
Siemens Southern Africa already has significant black economic empowerment credentials, with Sekunjalo and Africom together owning 26% the company`s equity.
The Sifikile-led consortium includes empowerment companies Ukwanda Investments and Mvelaphanda Strategic Investments.
G"ogele says together with Sifikile, SBS will leverage off its existing business and presence in the Sub-Saharan region.
He believes the new consortium`s involvement will bring SBS added impetus in winning government and parastatal contracts.
"Siemens has offices in most of the SADC regions, while Sifikile has conducted numerous deals in the regions. We will be looking to leverage off those contacts to extend our reach into the rest of the continent."
G"ogele says the deal doesn`t simply pay lip service to the aims of black economic empowerment. "We are particularly pleased with this deal as it benefits more than just a few individuals. The Sifikile consortium represents a broad base of over 75 000 previously disadvantaged individuals rather than a selected handful of people - a criticism that has been levelled previously at some empowerment deals.
"It is important to point out that Siemens Business Services, like Siemens before, has opted to obtain a direct empowerment shareholding in the operating company, rather than creating a separate empowerment entity to pursue specific public sector bids."
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