Westcon SA, a Datatec subsidiary, has swapped out empowerment partners in a bid to have a broader-based shareholder structure.
African Legend Computing's 26% stake in the distribution business has been bought back by Datatec, and sold to the Mineworkers Investment Company (MIC) for an undisclosed amount.
Westcon SA CEO Jacques Malherbe explains MIC has a broader base of shareholders than African Legend Computing, which is in line with the company's aim of having a broad-based equity partner.
MIC has total assets under management control of over R10 billion invested in sectors such as petroleum, automotive, financial service and the leisure industry. It was founded in 1995 by the Mineworkers Investment Trust to create an asset base to benefit mine, energy and construction workers and their dependents.
“We have been looking to make a strategic investment in a sound and solid IT company with international links and a good track record in SA, and we see this as an excellent opportunity to build the information technology aspects of our investment portfolio,” says MIC CE Paul Nkuna.
Malherbe says MIC will, because of its knowledge base, assist Westcon SA to improve its empowerment status in areas such as procurement and enterprise development. Westcon SA is currently a level four contributor in terms of trade and industry's codes of good practices.
Westcon SA will now start working on a strategy to move up the empowerment ladder, says Malherbe. The highest attainable level is one.
MIC will take up two seats on the Westcon SA board to actively influence the strategic direction.
“Transformation is the cornerstone of our investment strategy and we will be assisting the Westcon SA board in developing and implementing their transformation strategy throughout the company. We look forward to a long and successful relationship with Westcon SA,” adds Nkuna.
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