Electronics group Reunert has sold 25.1% of telecommunications cable manufacturer ATC to black empowerment group Kgorong Investment Holdings for an undisclosed sum.
Reunert acquired Marconi`s 51% share in ATC last year, increasing its own stake to 89.5%.
The group says the sale of the 25.1% stake to Kgorong is part of its empowerment drive in its cabling businesses.
"The previous shareholding structure made an empowerment deal difficult and rationalising the shareholding provided flexibility to enable the introduction of a new shareholder," says communications manager Carina de Klerk.
ATC, which was founded as African Telephone Cables in 1955, is the only producer of optical fibre in Africa and specialises in the manufacture of both copper and optical fibre telecommunications cables.
ATC CE Koos Vorster says the company has an impeccable record on employment equity, procurement from previously disadvantaged groupings and social investment.
"The deal with Kgorong now also positions ATC with a significant equity in the hands of a black company," he says.
Reunert`s relationship with Kgorong began in 1998 when the latter acquired a 10% stake in Reutech Radar Systems. In 2001 it acquired 30% of Reunert Defence Logistics.
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