Telkom chairman Jabu Mabuza has bought a 10% stake in investment holding company Sphere Holdings, for an undisclosed amount.
Mabuza will also become the black-controlled company's executive chairman and have a "hands on" role in the company, focusing on "capital-raising, deal origination and adding value to Sphere's existing portfolio", notes a statement.
Sphere was founded in 2003 and has a portfolio of interests in industrial goods and services firms such as Babcock Engineering, Babcock Target Plant Services, Pandrol and Honeywell. It was co-founded by Itumeleng Kgaboesele, who is its CEO and also a Telkom non-executive director, a post he has held since July 2011.
Mabuza's investment marks his "first significant commercial foray" since leaving Tsogo Sun, where he was CE until September 2011. He joined Telkom in November 2012 and, according to its latest annual report, holds stock in the telco worth almost R2 million.
Kgaboesele says Sphere is "extremely delighted" about Mabuza joining the company.
"He will help drive a more ambitious, acquisitive and operationally oriented Sphere as we seek majority holdings in mid-sized companies. We now have the balance sheet, the credibility and the capabilities to play a role in the transformation and diversification of the economy by building a black controlled company that is able to gain control or exercise significant influence in industrial companies."
Mabuza notes his involvement with Sphere - a company he has followed closely "over the years" - marks a "step change for professional black business in South Africa as it represents the joining of two different generations of black business to become a force in the investment space and in South Africa's industrialisation".
Kgaboesele says Sphere wants to raise between R500 million and R1 billion so it can buy majority or leading stakes in mid-size companies with an enterprise value of between R500 million and R1 billion.
Mabuza adds: "Sphere will be attractive to target companies because we have the credentials, capital, technical skills and track record to add real value that will drive operational opportunities and thus greater returns. I relish the challenge of playing a formative role in this next phase of Sphere's business."
Sphere, which is 71% black-owned, invests in companies based on their track record, management team and growth opportunities in SA and Africa.
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