Bye-bye Telkom, hello Vodacom?
That's because – as a lead player in a broad-based consortium tipped to become a potential empowerment partner to Vodacom – the ditched deal cuts out any potential conflicts it may have had due to Vodacom's 50% parent (Telkom) and Business Connexion tying the knot.
Various principals at Mowana are also investors in Business Connexion through its empowerment partner Gadlex. They include Business Connexion CEO Benjamin Mophatlane and his twin brother, Isaac, who's in charge of public sector business at that company. Both are involved with Mowana in a non-executive capacity.
Another Mowana principal is former chairman of the Parliamentary portfolio committee on communications and later regulatory affairs head at Telkom, Nkenke Kekana – Nat, to his colleagues. Lesser-known personality Bridgman Sithole, also a Business Connexion director, chairs Mowana.
Kekana is the lead player in the Vodacom hopeful Mowana 5M consortium, which derives its name from Mowana Investments, as one participant in the consortium.
The Mowana 5M consortium reads like a wish list of black information and communication technology (ICT) personalities. These include everyone from former Icasa chairman Mandla Langa to former Communications Department deputy director-general Joe Mjwara, to private sector personality Thabiso Moerane, former MD of IT investment vehicle Blitec and a member of the ICT Charter steering committee.
The consortium is also believed to be very broad-based, with representation across all nine provinces and the involvement of strategic entities including Women's Development Bank Investment Holdings – 100% owned by a charitable trust – and CIDA Empowerment Trust, which funds bursaries.
However, there's more to Mowana than its role in the Vodacom bid. Since its inception three years ago, it has maintained a low profile. Former JPMorgan corporate financiers John Poluta and Joseph Fizelle joined Mowana at the outset in their deal-making capacity.
Poluta says Mowana's low profile is due to most of its transactions being completed with private companies, where valuations are more reasonable than with those listed on the JSE. Fizelle says Mowana's hands-on approach is better suited to private companies that can react quickly to opportunities.
Mowana's natural affiliation towards the technology has seen it making some investments in the sector, including satellite broadcaster Globe and Brother Business Machines.
Poluta says Mowana is careful not to invest if there are any potential conflicts with Business Connexion. "We prefer to seek out complementary assets."
Notwithstanding its IT background, Mowana also identified the infrastructure spending boom early on and moved to diversify its asset base. It acquired an interest in Stefanutti & Bressan, a leading private civil engineering business. Poluta says Stefanutti & Bressan is a "special business that continually amazes us". A listing is also on the cards.
Mowana's other infrastructure investment is in niche mechanical and electrical engineering company Skelton & Plummer.
Apart from IT and infrastructure, Mowana has also diversified into financial services. In March 2006 it acquired a shareholding in the local operations of Experian plc, a FTSE 100 company and leading credit bureau worldwide.
At least its principals now have the certainty of knowing that the Telkom/Business Connexion deal is off and they can now focus on their future. And if Rand Merchant Bank – tasked by Vodacom to find it an empowerment partner – picks Mowana 5M as a beneficiary of that deal, it will undoubtedly have to give up the luxury of keeping a low profile.
Loading ...