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SMEs take Fujitsu Siemens stake

Kimberly Guest
By Kimberly Guest, ITWeb contributor
Johannesburg, 18 Jun 2008

European-based Fujitsu Siemens Computers has sold a 25% plus one share stake in its SA operation to a consortium for an undisclosed sum.

The Thuthukani Investment Consortium is made up of two SME black economic empowerment companies, Thuthukani Information Technology Services and Amava Holdings.

Thuthukani IT Services already has an investment in local IT services provider Atio. The company expects to make around R70 million in the current financial year. Amava has investments in a number of medium-sized ICT business and expects to make between R35 million and R40 million in the current financial year.

The deal came at a "slight" discount, was settled in cash and ties the consortium into Fujitsu-Siemens for seven years.

Active empowerment

The players have called the BEE deal "the next phase in empowerment".

Puven Pamasamy, Amava's group CEO, explains: "There was a period where the regular BEE deals with the regular players were required. We don't want to be one of those deals. The time is right for empowerment deals with black entrepreneurs who have cut their teeth building businesses. Deals like this add value to both sides of the equation."

Thuthukani MD Fannie Mahlangu agrees: "This is not just an investment, it's a commitment. There are opportunities available for all of us to benefit from this deal through an extension of operations and building of the companies."

Fujitsu Siemens' new MD, Idris Suleman, says the three companies have already sat down to identify areas where the companies can work together. For Fujitsu Siemens the emphasis is very much on broadening the range of services around its products.

The deal took over two years to conclude.

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