Wethu seeks tech stakes

Johannesburg, 30 Nov 2007

Two-year-old Wethu Investment Group (WIG) is looking for acquisition opportunities in the ICT sector.

The broad-based black economic empowerment (BEE) company is led by chairman Connie Molusi. The ex-CEO of Johncom is also head of Telkom Media.

The group notes it has identified several sectors which are "open to expansion through innovation and technology transfer".

One of the identified areas of interest is the ICT industry, says Fred Daniels, a WIG executive director and head of the ICT division.

"We don`t see this sector as having reached its potential. We are business people first and foremost; we see opportunities, both locally and abroad, and believe we have a diverse range of skills which could help companies take the next step," he explains.

Seeking influence

Although WIG is proud of its BEE credentials, Daniels says the company has no desire to participate in fronting or window dressing.

WIG group CEO Tony de Silva reiterates this point: "We consciously set about creating a new order black economic empowerment entity, realising that the market was being dominated by a few prominent organisations and influential individuals. Something new, honest and sincere is needed.

Adds Daniels: "We have every intention of being active investors. We are looking for companies that are willing to part with majority - if not controlling - stakes. However, we don`t see ourselves taking full stakes. The owner of a business should retain a 30% interest at least to keep him or her hungry for growth."

Despite WIG`s desire to acquire majority stakes, Daniels says it has found many organisations that are interested in what the company has to offer.

"We are not interested in instigating hostile takeovers. Besides, our discussions with a number of businesses in the ICT sector have shown this kind of tactic is not necessary."

Some of these discussions are already nearing finality, adds Daniels.

Full steam ahead

Last week, WIG issued a closed private placement participation invitation to "business associates and guests". This followed approval by its board to issue 250 million shares at 40c per share.

The company, which had 327 shareholders prior to the invitation, intends to list on the Alternative Exchange within three years and the main board of the JSE thereafter.

Other sectors identified by the group as having potential include: property development and management; leisure and tourism; industrial engineering; minerals and energy; and financial services.