Top 10 South African BEE deals 2004

06.12.2004
Von Nano Mothibi

1. Business Connexion Group Ltd./Comparex Africa Pty. Ltd.

Rating: *****

The merger of Comparex Africa and Business Connexion Holdings, to form a BEE ICT company with annual revenues in excess of R3bn, is rated as the best BEE deal of the year. One of the reasons for this is that it was followed by Comparex Africa officially changing its name to Business Connexion.

2. Metrofile/MIC

Rating: ****

The deal was announced on 21 October, when the Mineworkers Investment Co. (MIC) acquired a 25 percent stake in Metrofile from holding company MGX. The broad-based deal is rated highly, as its benefits will extend directly to the mine-workers.

3. Spescom Ltd./Vantage and Momotheka

Rating: ****

This year alone Spescom sealed two major deals with BEE companies, including Vantage Capital (which bought 24 percent of the group) and Momotheka Training (which bought 40 percent of Spescom Telecommunications). These moves have seen Spescom become 33 percent black-owned.

4. Mapulaneng Consortium/Introstat

Rating: ****

In March a BEE consortium called Mapulaneng acquired a 26 percent equity stake in local printing solutions company, Introstat Pty. Ltd.. This deal is rated highly for its broad-based focus.

5. Implitech Business Services and Tactical Software Systems consortium/Shoden Data Systems

Rating: ****

In February, Implitech Business Services Pty. Ltd. and the Tactical Software Systems consortium bought a 25,1 percent stake in Shoden Data Systems. The deal is rated highly for its structure and value.

6. Didata/Ngcaba consortium

Rating: ***

In August, former DoC director-general, Andile Ngcaba, entered into a BEE deal worth R380m to buy a 25,01 percent equity stake in DiData SA. This deal was rated for its broad-based nature and the value that Ngcaba would add to DiData SA in terms of the experience he brings from his former position.

7. Aberdare Cables/Sipho Pityana

Rating: ***

In March former foreign affairs director-general, Sipho Pityana, bought a 30 percent stake in Altron company, Aberdare Cables Pty Ltd. for R165m. Although this deal lacks in its broad-based rating, it is perceived as a success because of the value that Pityana brings to the company.

8. Moshebi Investments/Smartsource Corporate Training

Rating ***

In April Moshebi Investments acquired a 26 percent stake in Smartsource Corporate Training. Although the value of the sale was undisclosed, there is hope that the deal will add value to the Linux training provider.

9. Executrain/Lindiwe Mkhize

Rating: **

In May, computer training company ExecuTrain signed a black empowerment partnership deal with Lindiwe Mkhize, who now owns 9 percent of the business. Although not broad-based, this deal scores quite highly because of Executrain"s multinational status.

10. Telkom/PIC

Rating: *

The government"s Public Investment Commissioners (PIC) stepped in to buy Thintana"s 15,1 percent stake in Telkom SA Ltd., after the failure of efforts of a consortium led by Andile Ngcaba, former communications director-general and Dimension Data SA chairman, to raise funds to buy the stake. It will be warehoused for six months, during which period the Ngcaba-led Elephant consortium will be given time to raise the funds needed. The deal has received a poor rating for its lack of broad-based focus, as well as questions around the conflict of interests that will arise out of Ngcaba holding positions at both DiData and Telkom.

Please note that the ratings given above represent solely the opinion of the journalist concerned, based on her own research.