The Cape Empowerment Trust (CET) is to change its name and seek to transfer its listing to the JSE`s IT sector to reflect its changing focus.
CET bought Intella, formerly the IT interests of Paradigm Interactive Media, in August last year. Intella CEO Barry Havenga says the acquisition was made unconditional in January.
Intella builds communications, management and transactional solutions.
Havenga says CET plans to focus on IT and attain at least medium-capitalisation status (more than R300 million) through a combination of organic growth and acquisition, as well as achieving more share liquidity.
CET also plans to dispose of its non-IT assets "at the appropriate time", expand internationally and recruit both investment and "value-added" shareholders, while maintaining its key empowerment tenets.
Havenga says these tenets involve empowering skilled but under-capitalised partners, joint venturing, community involvement and job creation.
Intella has adopted a value-added niche focus, avoiding product distribution unless it is in line with value-added offerings. He says the company will seek to perform "gatekeeper" functions in its chosen sectors.
Its mission is to attain a leadership position in IT-based transactional systems to the mass market as well as in wireless value-added networking (VAN) services, and to take local concepts abroad.
Havenga says the group`s strategy is to grow both organically (in terrestrial wireless communications, fleet, recharge and commuter) and by acquisition. Five deals are under negotiation at present.
The group aims to achieve its strategic objectives by February next year.
Havenga says SpaceNet wireless VAN customers include Amplats, Busby, Fulcrum Bank, Dimension Data, Sentech and AMEX.
Intella, which recently conducted a road show to introduce the revised strategy to potential investors, has received "positive bites" from five institutions, Havenga adds. "We think we have raised thirty-odd million rand."
He says he expects the CET name change to take place in March.
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