Black IT Empowerment Company (Blitec) has acquired 25.3% of JSE-listed ERP.com Holdings from Treacle Venture Partners.
Blitec paid R43.1 million for about 43.52 million shares at 98c each - a 15.5% discount to yesterday`s closing price of 116c.
ERP.com says a Blitec representative will be appointed to its board with effect from 1 October.
Treacle held 34.7% of ERP.com before the Blitec deal. It acquired a 14.5% stake for R5.8 million in October 2001 and then bought part of ERP.com shareholder Ronnie Price`s 25% stake in January 2003.
At the time, ERP.com was trading at 45c a share, which means that Treacle made a profit on the latest deal, even taking the discounted sale price into account.
The balance of Price`s shareholding was bought by Investec Asset Management.
Peter Forsyth, ERP.com`s CEO, says the company has been engaging with Blitec on various initiatives in the past 18 months.
"As a direct result of this interaction and engagement with Blitec, it soon became apparent that there was significant common ground between us on how we saw the ICT sector developing into the future," he says.
"This transaction will enable us to start implementing our transformation objectives."
Forsyth adds that Blitec will play an important role in attracting, developing and promoting historically disadvantaged individuals at senior levels.
Blitec CEO Thabiso Moerane says Blitec ERP.com has an impressive track record.
"We share a common vision with ERP management on the ICT sector and especially as to how the transformation process should occur, and we look forward to working closely with them over the years to come," she says.
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ERP.com shuffles board
Ronnie Price sells 25% of ERP.com
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