REUNERT LIMITED
MEDIA RELEASE
Reunert Limited today announced that Kgorong Investment Holdings had
acquired a further 20% in Reunert Defence Logistics (RDL) in a deal worth
R80 million. This takes its shareholding in RDL to 30% with effect from 1
June 2001.
RDL, amongst its various activities, maintains the communication network
connecting all the South African Airforce bases. This system enables voice
and data communications through a series of command centres and radar sites.
The network facilitates communication over secure and dedicated
communication lines as well as providing support to the air traffic control
system for the South African Airforce. RDL also provides communications
logistics services to the South African Army.
RDL is part of the Reunert group, listed in the electronics sector of the
JSE. RDL and its forerunners have been providing maintenance and logistics
support to the South African National Defence Force for over 37 years. RDL
is the single largest electronic support company providing services to the
SANDF on an on-going basis. Reunert and Kgorong are also partners in
Reutech Radar Systems, which designs and manufactures land and sea based
radar equipment.
Kgorong is an investment company under the control of Letepe Maisela,
Chairman, and Gaby Magomola, Managing Director. The company has a number of
strategic investments and plays an important role in the strategic and
operational management of its various business partners. The relationship
with RDL started in 1998 and has proved to be beneficial to both partners.
Mr Magomola is deputy Chairman of RDL, while Mr Maisela is a non-executive
director.
Commenting on the deal Pat Gallagher, Executive Director of Reunert, says,
"Reunert is very satisfied with the partnership with Kgorong. The
acquisition of the additional 20% shareholding was dependent on the
performance of Kgorong since the initial 10% was acquired. Gaby, Letepe and
their fellow directors have certainly demonstrated their ability to add
tangible value, and we welcome this strengthening of our relationship."
Mr Magomola said the role of Kgorong was not merely to provide a marketing
function to its investments. "We work with our partners in developing and
implementing strategy. Naturally we have an empowerment and
transformational role to play, but our focus is on skills transfer and
people development within our strategic partners. We have worked well with
RDL in setting and meeting transformational targets. We are also working
with the company to increase local and international defence business as
well as achieving our target of having more than 50% of revenue coming from
the private sector."
Contact Details:
Reunert Limited
Carina de Klerk
Tel (011) 517 9000/9033
Cell 083 631 5743
Kgorong Investment Holdings
Gaby Magomola
Tel (011) 807 4849
082 459 4131
Issued by TriLogy Communications
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