Marconi, the global telecommunications equipment and solutions company, is committed to growing its market share in SA despite selling its interest in telecoms cable manufacturer ATC.
Reunert announced yesterday that it had acquired Marconi`s 51% interest in ATC for an undisclosed sum.
Reunert, which will own 79% of ATC once the deal has been completed, has taken management control, although the sale is still subject to a number of suspensive conditions.
Reunert communications manager Carina de Klerk says the 21% share held by African Cables in ATC will remain unchanged. Reunert owns 50% of African Cables.
Franklin Pieterse, Marconi Communications SA marketing director, says the sale has "no relation whatsoever" to the financial restructuring of parent company Marconi plc.
Earlier this year the debt-laden Marconi, which has had a tough time since its customers cut their spending, reported a loss of lb5.7 billion for its full year, believed to be one of the biggest losses by a British company.
Net debt reached lb2.9 billion, and the company was forced to thrash out a refinancing deal in August, which amounted to a debt-for-equity swap effectively passing control to its creditors. Current shareholders will own only 0.5% of the company once the deal is complete.
"Frankly speaking, ATC has become a liability for us," Pieterse says. "It has also taken action against Telkom, which is not in our interest and we didn`t support that."
ATC has also been experiencing difficult trading conditions following the global telecommunications downturn, but Reunert CE Gerrit Pretorius says he is confident that market conditions will improve in the longer term and that ATC will be a valuable asset going forward.
"The new shareholding arrangements are an important step in facilitating the introduction of a black empowerment partner in ATC," Reunert says. "Reunert is expected to announce more details on this deal shortly."
Pieterse says Marconi is "absolutely committed to the South African market and we are growing our market share. There is not even a hint of pulling out of SA. We are fully empowered, with 25% plus one share belonging to African Renaissance Holdings, and we are very successful in the local market."
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