Altron company Aberdare Cables has sold a 30% stake in its business to a black economic empowerment consortium for R165 million.
The consortium is led by Izingwe, a new investment company chaired by former foreign affairs director-general Sipho Pityana. Other members of the group are the Matomo Group and Hlumani-Kgolang Investments.
"Our commitment to this deal and to black economic empowerment as a whole is reflected in the structuring of the partnership," says Robert Venter, Altron CEO and Aberdare Cables chairman.
"The Izingwe Consortium will have an immediate holding of 40% and we are excited with the opportunity to work closely with all the members of the consortium."
Izingwe`s strategy and advisory services business, Laetoli, which has a specialised division focusing on black economic empowerment, will be made available to Aberdare Cables to assist with the development, implementation and maintenance of the empowerment undertaking.
Pityana says the deal is a significant market entry for Izingwe and complements Aberdare Cables` strategic direction.
The partnership will be launched officially on 31 March.
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