Choice Technologies, a leading empowerment provider of enterprise technology solutions, today announced that the 49% stake previously owned by Dimension Data has been acquired by the National Empowerment Fund (NEF).
The deal, which sees the NEF warehouse a strategic stake in Choice Technologies, is seen as an important move in the industry, making the technology company which is already AA rated by Empowerdex, 100% black owned and controlled.
Dimension Data offered its equity to the NEF in a favourable deal that ensures the continued viability of Choice Technologies and is in line with its commitment to the development of black enterprises.
"The exiting of our shareholding had to be based on sound business rationale, while also taking into account the responsibility leading companies in South Africa have to the promotion and development of transformation. Therefore, as a company committed to transformation, we agreed not to demand the full monetary value due," says Sean Joubert, CFO, Dimension Data South Africa.
"The decision to exit our shareholding in Choice Technologies is in line with our strategy to focus our finances and resources on developing the solutions and services that we offer internally rather than through joint ventures," comments Joubert.
The deal will see Choice Technologies recapitalise the business, strengthen the balance sheet and embark on an aggressive growth strategy.
Furthermore the cash injection will allow Choice Technologies to continue its expansion in the South African market and solidify its market position. With recent high profile wins such as HSRC, Ethekwini Metro, Department of Communications, SA Social Services Agency, Old Mutual/Nedcor, the company is ambitious and confident for 2006.
According to Semela Tseka, CEO of the Choice Group of companies, the move to a fully empowered organisation will better position Choice Technologies to take advantage of further opportunities in both the public and private sectors. This deal makes us a 100% black owned and controlled company and will continue to fuel our expansion into the South African enterprise market."
For more information about the company, please visit www.choicetech.co.za.
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