Technology and electronics solutions firm Tellumat has announced a vendor-financed R100 million black economic empowerment (BEE) deal, in which Sihayo Technology Holdings has acquired a 30% stake in Tellumat.
Sihayo, which is involved in various businesses including, IT, finance and tourism, has effectively acquired shares, to be financed from future earnings, as part of an effort by Tellumat to broaden the company`s shareholder base.
Tellumat CEO Llew Jones says the company had discussions with a wide range of potential partners, but chose Sihayo because it is a "broad-based grouping" with an interest in the telecommunications and electronics space.
"The deal means we are in compliance with the ICT empowerment charter and the Department of Trade and Industry`s (DTI`s) code of best practice for black empowerment. The deal will also work financially for both sides," says Jones.
Sihayo has two non-executive directors on the board of Tellumat and one of those is a black woman, Rizelle Sampson. "We are currently in discussion with Sihayo, to add two new executive directors," says Jones. "We are convinced that Tellumat requires a fresh injection of ideas at board and executive management levels."
Jones says the partnership will boost Tellumat`s straegy to invest in indigenous technology to provide a better base of support for its South African customers.
Sihayo MD Zamile Mzantsana says the deal enables Sihayo to participate, both at strategic and operational level. "We view that as the best way to add value to one`s investments," he says.
"Tellumat`s industry knowledge and innovation in product development, coupled with Sihayo`s experience, will ensure that the partnership thrives into the future," Mzantsana adds.
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