Black partners in Phambili deal
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A JOINT venture company formed by Comparex to boost its empowerment credentials is being sold off to its black partners in a R12m deal.
Comparex and Gijima Technologies originally created Phambili Information Technologies in 1996 when both sides injected just R25000 into the business. Since then Phambili has grown to a point where Gijima CEO Robert Gumede is happy to evaluate it as an operation worth R24m, and pay R12m to take over the 50% held by Comparex.
Phambili was one of the most successful companies in the Gijima stable and had carried out a lot of work for government, said Gumede.
"We have always had management control and it has always been profitable. Both firms have made some good money and developed a business with highly skilled individuals," he said.
"This has been a successful empowerment deal because when we went into it we each put in R25000. We started the operation with a view to helping black people grow. We have learnt a lot from Comparex in terms of corporate governance."
Gijima has wanted to buy the business out of Comparex for two years, but white-owned Comparex had been reluctant to let it go of because of the empowerment credentials Phambili added to its operations.
Late last year Comparex concluded a R225m deal to sell 25% of its Comparex Africa subsidiary to black-owned Business Connexion, giving it a strong enough empowerment profile to let Phambili go.
The deal for Gijima to take over Phambili was concluded on February 4 .
Comparex CEO Peter Watt said he was pleased that Phambili's capacity had been developed to a stage where it could function as a stand-alone business. "We have a commitment to building empowerment capacity within the industry. Phambili has generated good profits for both sides and it was time to make a decision on who should take it forward," he said.
Despite its tie-up with Business Connexion, Comparex would still be keen to form new partnerships to support fledgling empowerment companies if it spotted potentially successful start-ups in the future, he said.
Under the agreement with Comparex, Phambili was restricted to working on government contracts. However, as a wholly owned subsidiary that restraint will fall away, leaving it free to bid for a range of work.
Feb 16 2004 08:17:39:000AM Lesley Stones Business Day 1st Edition
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