Two black owned investment groups (BEE), Sekunjalo Telecoms - a subsidiary of JSE-listed empowerment group Sekunjalo - along with Africom Telecom Holdings are acquiring 13% of Nokia Siemens Networks Holdings RSA, a holding company that owns 60% of the Nokia Siemens Networks SA, the operating entity.
No value has been disclosed for the deal, although the companies say that the market value cash consideration to be paid by Sekunjalo Holdings and Africom Holdings has been financed by the Rand Merchant Bank of South Africa.
Linda Khumalo, the head of Nokia Siemens Networks SA, said the move was the first phase of its black empowerment compliance process. The net impact is that the BEE shareholding in Nokia Siemens Networks SA is 18.9%. This takes into account the 9.5% BEE shareholding in Reunert, which is a 40% shareholder in Nokia Siemens Networks SA.
Khumalo concluded "We are thus proud to disclose that in the space of a few months we have secured a deal that lays the groundwork for Nokia Siemens Networks South Africa to align itself to all seven pillars of BEE."
Black Economic Empowerment (BEE) is a program launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups (black Africans, Coloureds and Indians) economic opportunities previously not available to them. It includes measures such as Employment Equity, skills development, ownership, management, corporate social investment and preferential procurement.
Posted to the site on 26th November 2007
Posted to: www.cellular-news.com/story/27667.php