JSE-listed Prism Holdings and the Mineworkers Investment Company (MIC) today (9 December 2004) signed heads of agreement on a BEE transaction that will give MIC a 17% shareholding in the Trusted Transactions company.
For Prism, the proposed deal is in line with the spirit of the proposed ICT Charter as well as Prism`s commitment to broad-based transformation; while MIC gains access to a dynamic and rapidly growing sector in the technology arena - secure electronic transactions.
This agreement is an extremely positive development for Prism in that the company now has a 17% broad-based BEE partner at the Prism Holdings level.
The proposed deal, which is subject to Prism shareholder approval, will involve 100-million Prism shares which will be procured on a pro rata basis from existing ordinary shareholders at a price of 36c per share - a total of R36-million.
We are absolutely delighted that we are able to fund a substantial portion of this transaction internally. Another benefit from our perspective is that although MIC is a relative newcomer to the Technology arena we anticipate valuable input and advice regarding Prism`s ongoing transformation programme," says Prism financial director, Jan Hnizdo.
"This BEE transaction will result in long-term benefits accruing to the widest possible community of black South Africans given the MIC`s focus on making tangible contribution to the economic development and social upliftment of mineworkers, ex-mineworkers and construction and energy sector workers through its funding of social development projects around the country," he adds.
MIC executive director Keshan Pillay says the agreement with Prism opens new avenues of investment potential for the company.
"Prism is one of the most dynamic and innovative companies in South Africa, developing practical solutions that touch us every day and improve our lives. We are excited at the prospect of being part of a company that is making such a difference at home and more than making its mark in the highly competitive international arena."
Subject to the relevant Prism shareholder approval being obtained, the deal is expected to be finalised in March 2005.
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MIC is one of the country`s leading proponents of "broad based black economic empowerment", an approach to economic empowerment which sets out to improve the lives of a large number of previously disadvantaged individuals and their families.
Founded by the National Union of Mineworkers in 1995, MIC has been an empowerment pioneer in many respects by being a driver and party to some of the country`s landmark black empowerment transactions such as:
The initial acquisition of Vodacom
* The listing of HCI and the winning of eTV "free to air" television broadcasting licence
* The winning of two gaming licences with Global Resorts SA being Graceland in Secunda and Caesars Gauteng and the facilitation of over Rl,5 billion in direct fixed investment
* Securing joint control over Primedia Ltd with recognisable assets such as Radio 702, Cape Talk and 94.7 Highveld as well as Ster-Kinekor
* Concluding the landmark transaction with, multi-national BP to secure 25% equity of BPSA for MIC and the WDB Investment Holdings initiative
* Acquiring 25% of Tracker Vehicle Recovery Network
Prism Holdings
JSE-listed Prism Holdings Limited is a leader in the field of secure electronic transaction technologies and services. The Group has a strong presence in South Africa and an established and expanding footprint across Africa and South-East Asia. Prism`s head office is located in Johannesburg, South Africa and has a regional office in Kuala Lumpur, Malaysia.
Prism has a proven track record in the delivery of trusted transaction technologies and end-to-end solutions for the retail, utilities, banking, cellular and petroleum industries. The Group has developed and implemented innovative transaction and payment-centric Intellectual Property that bridges the following technologies:
* Chip cards including SIM cards, financial smart cards and prepaid telephone cards
* Point-of-Sale frameworks, applications and devices
* OEM transaction modules including PINpads, card readers and outside payment terminals
* Transaction security modules and servers and trusted centre solutions
* In-store and forecourt payment servers, wireless application messaging gateways and value-added-services gateways
* End-to-end secure electronic payment architectures for wired and wireless networks
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