Eskom, Transnet pull out of arivia.kom

State-owned utilities Eskom and Transnet will sell their entire shareholding of government IT company arivia.kom on the open market.

This is according to a statement issued late Friday afternoon by Transnet communications GM John Dludlu.

"The Boards of Eskom Holdings and Transnet have approved the sale in the open market of their entire shareholding in arivia.kom," he says, adding: "The disposal of the Eskom and Transnet shareholding in arivia.kom will follow an open tender process."

The details of the sales will be disclosed to interested bidders in due course.

Arivia.kom - formed through a merger of the IT businesses of Eskom, Transnet and Denel in 2000 - has for the past year or so been held by Eskom (with a 58,5% shareholding) and Transnet (41,5%). Denel disinvested from arivia early this year.

Denel`s disinvestment, as well as today`s announcement, is in line with government`s policy for parastatals to withdraw from non-core assets.

Eskom and Transnet have, notes Dludlu, agreed to set up an interim management structure with immediate effect to oversee the day-to-day affairs of the company during the transition to the new owners.

"They have also agreed a set of stringent conditions to govern the current contractual arrangements between arivia.kom and Eskom and Transnet."

Also announced was the resignation of arivia CEO Zeth Malele, whose tenure expires on 31 October.

Transnet`s statement notes that the chairman of the board of arivia.kom, Nonkululeko Nyembezi-Heita, and the board thank Malele "for his contribution to the company and wish him well in his career."

ITWeb will feature in-depth analysis of the shareholding decisions and Malele`s resignation on Monday.