Ericsson SA has entered into a shareholding agreement with Ringgold Consortium that will see Ringgold acquire a 25.1% equity stake in the company, as Ericsson's empowerment partner.
Chaired by Gift Mphefu, Ringgold was established as a special purpose vehicle by young professionals active in the ICT, engineering, and financial services sectors. Under the deal, Mphefu and his co-shareholder, Thabi Leoka, have been appointed to the Ericsson South Africa board as non-executive directors.
Ericsson, which provides communications technology and services, has not disclosed the value of the purchase.
The ICT charter requires unlisted companies to be 30% empowered, and listed entities to sell 25.1% to black entities, with equity deals capped at R7.5 billion.
The ICT charter, more than a decade in the making, finally came into effect in the middle of 2012.
Ericsson SA MD Magnus Mchunguzi says the deal followed "an extensive process to identify a partner who shares our commitment, our vision and philosophy".
"We look forward to working with our new shareholders and we're confident that our partnership will further establish Ericsson as a preferred business partner in SA."
Mphefu adds the consortium is "excited at the opportunity of working with a global leader".
Other Ringgold shareholders include Calvo Mawela and Diliza Mbete.
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