| Tue 1 Apr 2003, 16:25 | | Reunert Limited - Kgorong Takes Up 25,1% Sharehold |
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REUNERT LIMITED - KGORONG TAKES UP 25,1% SHAREHOLDING IN TELECOMMUNICATIONS
CABLE MANUFACTURER
REUNERT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1913/004355/06)
Share Code: RLO
ISIN: ZAE000005914
("Reunert")
MEDIA RELEASE
KGORONG TAKES UP 25,1% SHAREHOLDING IN TELECOMMUNICATIONS CABLE MANUFACTURER
Johannesburg, 1 April 2003
Black empowerment group, Kgorong Investment Holdings (Pty) Ltd, has acquired a
25,1% shareholding in telecommunications cable manufacturer ATC (Pty) Ltd. The
transaction was made possible after Reunert Ltd, which holds 89,5% of ATC, sold
the 25,1% stake as part of its empowerment drive in its cabling businesses for
an undisclosed amount. Kgorong would appoint two directors to the ATC board. The
transaction is effective immediately.
The deal was facilitated after Reunert acquired Marconi Plc"s 51% share in ATC
end last year - growing its stake to 89,5%. The previous shareholding structure
made an empowerment deal difficult and rationalising the shareholding provided
flexibility to enable the introduction of a new shareholder.
The relationship between Kgorong and Reunert started in 1998 when Kgorong
acquired a 10% stake in Reutech Radar Systems, subsequently followed by an
acquisition of 30% in Reunert Defence Logistics in 2001. ATC chief executive
Koos Vorster, said ATC has an impeccable record on employment equity,
procurement from previously disadvantaged groupings and social investment. The
deal with Kgorong now also positions ATC with a significant equity in the hands
of a black company."
Letepe Maisela, chairman of Kgorong, said "Kgorong regards its latest
acquisition as yet another feather in its cap, affirming its role as a serious
empowerment player in the South African economy, whose core strategy remains
value add and transformation of businesses that we partner.
"Empowerment is forever evolving and we at Kgorong make adjustments in our
approach as we go along forever ensuring that good governance and the bottom
line are not compromised in our dealings. We regard ATC as a formidable partner
and with whom we aim to grow the business further."
Background to ATC
ATC is the only producer of optical fibre in Africa and specialises in the
manufacturing of both copper and optical fibre telecommunications cables.
The company was founded in 1955 by a group of British cable manufacturers as
African Telephone Cables. Its factory and head office based in Brits, North West
Province, was established in 1972/3. ATC installed the first optical fibre cable
plant in Africa in 1982 and established the first optical fibre plant in the
Southern Hemisphere in 1984.
Background to Kgorong
Kgorong is an empowerment company with founding member Letepe Maisela as
executive chairman and Irvin J Pascal, chief operating officer.
Kgorong is creating a portfolio of technology investments and operations with a
focus on information communication technology, electronics and electrical
businesses such as RDL, RRS, Alstom and now ATC. Kgorong plays an active role in
strategic planning, employment equity, skills and enterprise development as well
as pursuing contracts and opportunities in companies it invests in.
Background to Reunert
Reunert is a R5bn electronics and low-voltage electrical engineering company
listed on the JSE Securities Exchange South Africa. It manages a portfolio of
businesses such as Nashua, Nashua Mobile, Circuit Breaker Industries and NPC
Electronics (Panasonic),
Reutech and African Cables. Reunert also holds a 40% share in Siemens
Telecommunications.
For more information contact
Carina de Klerk
Reunert
Communications Manager
Tel: +27 11 517 9000
Direct: +27 11 517 9033
Mobile 083 631 5743
Sponsor
Rand Merchant Bank Corporate Finance
A division of FirstRand Bank Limited
