Black empowerment company African Renaissance Holdings (ARH) has purchased 25.1% of debis Southern Africa IT Services in a deal worth about R120 million.
Gavin Pieterse, chief executive of ARH, says the deal was struck in the true spirit of black empowerment.
"Debis discounted its shares to us by 20%. In addition, it is bankrolling the share transfer with a soft loan. We will be paying R14 million for the first tranch of 15%. The additional two tranches of 5% and 5.1% will take place over a 24-month period. The interest rate on the soft loan will be determined by the profitability of the company.
"We will have full voting power on the debis board from the outset as if we already owned the full 25.1% after the deal is signed."
Pieterse says this voting power will make it possible for ARH to infuse an empowerment culture into the company and bring to the table its in-depth insight of the South African market.
The partnership will focus on both the private sector and government for the provision of network and IT services.
Debis, which is owned by debis Systemhaus in Germany, is a wholly owned subsidiary of the Daimler Chrysler Corporation and Deutsche Telekom AG.
"Debis supplies network and IT services in SA to some of the largest players in the financial field, including the entire IT structure of the Daimler Chrysler Corporation in SA, as well as financial giants Sanlam and Metropolitan," explains debis SA CEO, Wolfgang Jakob.
"Both our board in Germany and we as its subsidiary in SA are delighted to be partnering with African Renaissance Holdings because they will help us to achieve our targets and expand the company at a rapid rate," he says.
Debis SA has been in the market for an empowerment partner for some time, intimating in February that a percentage of the company was up for grabs.
ARH was formed by black professionals in 1993 as an investment and empowerment vehicle in response to the change in political circumstances.
It has interests in Finlar Foods, Powerlib/Exel petroleum, New Diamond Corporation and Tsogo Investments, valued collectively at R77.5 million.
ARH says it plans to invite a strategic equity partner to join the company, which is currently 100% owned by founding shareholders.
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