Reunert and CS Holdings have issued a joint announcement on Reunert`s acquisition of a 31.7% stake in CS Holdings.
Reunert has acquired the equity stakes held by Getronics NV and Electra Share Ventures in CS Holdings. Electra`s investment was managed by the private equity operation of Genbel Securities (Gensec).
Reunert acquired 40 million CS Holdings shares from Getronics and 37.7 million CS Holdings shares from Gensec at a price of 55c per share. The deal is effective immediately.
Getronics acquired the CS Holdings shares in 2001 as part of the sale of Getronics South Africa to CS Holdings. Getronics is in the process of consolidation on an international basis by divesting non-core assets.
The investment in CS Holdings was regarded as too small to be strategic. However, the strategic alliance agreement between Getronics and CS Holdings is not affected by this sale and will remain in force.
Gensec is closing its private equity operation and divested from CS Holdings as part of this process. The investment has been managed since 1997.
"Opportunities like this seldom come about," says Reunert CEO Gerrit Pretorius. "CS Holdings operates in the same client sphere as other Reunert companies like Nashua. As a consequence, more products and services will be offered to existing and new customers."
"CS Holdings has managed to successfully replace two major shareholders in the company with a strategic and powerful industry player," says Annette van der Laan, CEO of CS Holdings.
As a result of the transactions, Axel Ruckert (Getronics NV) and Steve Muller (Gensec) will resign as non-executive directors from the board of CS Holdings and two Reunert directors will be appointed in their stead.
Anton Botha and Theo Bohlmann, both independent non-executive directors, also resigned and will be replaced with independent non-executive directors.
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