Holding company Morvest Business Group is selling its stake in SAB&T Business Innovations Group (BIG) for R20 million, but will keep the outsourcing division.
The company said in a statement to shareholders yesterday that it will sell the unit to Treda Trading, although it will keep the outsourcing division, which includes the adult literacy programme and an outsourcing fishing-related contract.
Black-empowered Morvest is a holding group with a footprint in SA, Mozambique, Nigeria, India and the US. Its operations are aligned into three key divisions: business support services (including professional services and outsourcing solutions); ICT solutions; and its retail and consumer services unit.
Morvest says the sale is being concluded through its SAB&T Ubuntu entity and it will be paid the R20 million in cash through several tranches.
BIG's core business is providing internal audit and certain consulting services to the public and private sectors, including business process outsourcing.
The business has been negatively affected by the new empowerment requirements, leading to a drop in its black economic empowerment rating, the company says. As a result, BIG has faced difficulties competing as a level three empowered company.
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