Johannesburg, 01 Mar 2007
Royal Bafokeng Holdings has increased its stake in SA's largest IT distribution group to over 50%.
Royal Bafokeng Holdings, the investment arm of the Royal Bafokeng Nation, has increased its stake in MB Technologies (MBT) from an initial 26%, after the competition authorities recently gave it the go-ahead to buy out minority shareholders in the distribution company.
MBT CEO Leo Baxter says he cannot disclose the exact percentage of the new black ownership, but adds the deal will open doors for the company. "We were the worst example of a South African company." A year-and-a-half ago, the company was "lily-white", he says.
Royal Bafokeng's stake will turn MBT into SA's largest black-owned technology group, the company claims. Baxter says MBT is a multibillion-rand turnover company, with potential to grow further on the back of its recent joint venture announcement with Ingram Micro.
Royal Bafokeng Holdings CEO Niall Carroll says the nation has a positive view of the company and its performance, which was underscored by news of the joint venture with the world's largest IT distributor. "These two developments should strengthen MB Technologies' position within the market for the benefit of customers, suppliers, employees and shareholders," he adds.
Baxter says the company will enter new markets, such as the public sector, and is in a strong position to benefit from government's black economic empowerment requirements.
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