BT in landmark BEE deal
BRITISH Telecommunications has strengthened its resolve to penetrate the South African market through a black economic empowerment deal.
BT South Africa sold a 30 percent stake to JSE-listed investment financing company Sekunjalo in a deal worth R25-million.
Brian Armstrong, BT’s vice-president for the Middle East and Africa, said the company was not worried about the crisis that has gripped world economies this year.
“Our investment in South Africa is not an overnight thing. We have been here for 16 years and we have a long-term commitment to the country, and BEE is a key part of that.
“BT South Africa is not a small satellite to the larger group but is fully integrated into the global business,” Armstrong said.
Half of BT’s business in its Middle East and Africa region is in South Africa, where the company is growing rapidly. Of BT’s 300 IT experts in the region, 120 are in South Africa.
BT employs more than 37000 people worldwide and operates in more than 170 countries. It recorded revenues of about R95-billion in its latest annual results.
Sekunjalo was established in 1996 and has built up a portfolio of investments in the industrial, manufacturing, technology and innovation sectors.
Mohamed Kajee, chief executive of Sekunjalo, said: “We are quite strong in the public sector and are currently involved in a lot of government tender work.
“This partnership will allow us to leverage these tenders and ensure that we have access to capabilities [through BT] that we are unable to provide ourselves.”
Kgaugelo Matjakana, senior analyst at economic empowerment rating and research agency Empowerdex, said Sekunjalo was one of the most empowered companies on the JSE.
Matjakana said: “The company has a black ownership of 92 percent and black representation on its board of 66.7 percent. Their compliance with the rest of the BEE scorecard is quite good because they don’t rely just on management and ownership.”
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