BT unveils R27m empowerment deal

first_img7 November 2008UK-based multinational telecoms company BT has unveiled an empowerment deal under which Sekunjalo Investments will acquire a 30% stake in the company’s South African business for R27-million in cash.According to BT, the company has been operating in South Africa for more than 16 years, and the deal, for which it is providing vendor financing, demonstrates the company’s commitment to black economic empowerment.Its local business currently serves over 300 clients, including several locally based multinational companies.“We are delighted to be able to partner with such a high-profile empowerment group as Sekunjalo,” BT Middle East and Africa vice-president Brian Armstrong said in a statement this week.“This clearly represents another milestone in BT’s development in South Africa and opens a whole raft of new business possibilities for BT.”Top empowerment companyThe JSE-listed Sekunjalo was established in May 1996 as a black-controlled economic empowerment group to benefit previously disadvantaged individuals and community organisations – who make up over 80% of the company’s shareholder base.In 2006, Sekunjalo was recognised as South Africa’s Top Empowerment Company by the authoritative Financial Mail/Empowerdex Survey of Top 200 listed companies. The following year, the company was selected as one of the top 125 New Champions Global Growth Companies by the World Economic Forum.“We are extremely excited to partner with BT, one of the world’s leading providers of communications solutions and services,” said Sekunjalo Investments CEO Mo Kajee. “BT has a long track record of success not only in South Africa, but Africa as a whole, and we are excited about the new opportunities this partnership brings to both BT and Sekunjalo.”Following the transaction, which is subject to South African Reserve Bank approval, Sekunjalo will be able to appoint two representatives to BT’s South African board, with the remaining five members being BT-appointed representatives.SAinfo reporter Would you like to use this article in your publicationor on your website?See: Using SAinfo materiallast_img