MARCH 2001
UNIFER ACQUIRES BLAKE HOLDINGS TO CREATE UNIQUE LENDING AND COLLECTING SERVICE
UniFer Holdings, a leading provider of quality financial services to the
emerging market, has acquired a major shareholding in Durban-based Blake
Holdings (Pty) Ltd, the major player in the new field of debt administration
management. The cash deal is worth R25m and is effective from 1 September 2000.
"The deal is significant as it enables us to offer a lending and debt
administration management outsourcing service that is unique to this country.
This acquisition is important as it signals UniFer's expansion into credit
services, which complements our personal loan business and creates a profitable
niche for the group," says Joel Klotnick, CEO UniFer.
Blake implements a holistic approach to the entire credit risk management
process using a range of innovative techniques, including state-of-the-art risk
assessment and debt administration management software. In essence, it is a
debt administrator at the high end of the collection market. Its impressive
client list includes some of the major retailers and banks.
Klotnick says: "There is a strong trend towards the outsourcing of debt
administration as well as funding, especially among retailers. This introduces
opportunities for new products with greater flexibility.
"Currently we don't have formal relationships with retailers. By offering
innovative products we have a strong differentiating edge over other players in
the market. Retailers will thus be able to rely on us to lend and collect".
Blake was established in 1990 and has shown a compound annual growth in
turnover of 43% over the last 5 years. It consists of four niche operations
namely Blake & Associates (debt administration), Strauss Daly Credit
Corporation (legal services), Due Process (market research and intelligence)
and e-xecute (on-line legal services). Each operation has a strong empowerment
focus, equipping previously disadvantaged people with business skills.
Blake's Due Process division gathers and supplies market intelligence on an
ongoing basis using unique methodologies. Klotnick says: "It is important to
keep abreast of market trends to understand customers' wants and needs.
However, research and information about the mass market are hard to come by. In
addition to the niche business of debt administration management, Blake will
also supply us with such market information."
Howard Blake, chairman Blake Holdings says: "Our success lies in our commitment
to supplying a cost-effective and ethical service. In addition we are now also
providing turnkey outsourced debt administration management solutions.
"We have national coverage and are leaders in the debt administration
management market. While there is no direct competition due to our unique mix
in the services offered by Blake, other players in the wider market include
Snyman & Vennote and Munnik Basson Da Gama."
ENDS
ISSUED BY: Bullion PR and Communications
Contact person: Lola Lazarus
Tel: (011) 803-3615
Cell: 083 271 5336
e-mail: lola@bullionpr.com
ON BEHALF OF : UniFer Holdings Ltd
Contact person : Joel Klotnick, CEO UniFer
Tel: (011) 259-7030
Cell: 083 410 3817
Contact person: Ronel Muller, Investor Relations UniFer
Tel: (011) 259-7040
Cell: 083 326 5996
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