The usual suspects…
Rand Merchant Bank has been appointed to structure the deal and has – according to speculation – narrowed its choice of consortiums to four, with Nkenke Kekana’s Mowana Five Mile consortium apparently emerging as the favourite. Others tipped for possible inclusion are Andile Ngcaba‘s Elephant Consortium (it secured a 6,1% stake in Telkom), Bulelani Ncguka’s Amabubesi Investments and Saki Macozoma’s Safika Investments.
Ngcaba’s role in the Telkom deal – given that he was a former director-general in the Department of Communications, which oversaw the asset under his tenure – should seemingly have hastened Government’s resolve to enact legislation barring its retired officials from sharing in the spoils of empowerment.
However, executive director at empowerment rating and verification agency Empowerdex, Chia-Chao Wu says there’s no legislation at face value that bars outright former Government officials from buying into assets they once managed and that have been lined up for disposal in empowerment deals.
Says Wu: "There’s a cool-off period prescribed for departing Government officials but that doesn’t prevent them from participating in future empowerment deals."
First-hand details remain scant. However, what’s known for sure is that the deal will be structured to include staff (they’ll reportedly get 25% of the empowerment-allocated shares), broad-based groupings and strategic partners.
Vodacom chief communications officer Dot Field declined to be drawn into explaining the specifics, insisting that all queries be directed to the company’s joint shareholders, Telkom and Vodafone, which each owns 50% of the telecoms incumbent. Neither Telkom nor Vodafone were prepared to comment.
Former Parliamentary Portfolio Committee on Communications chairman Nkenke Kekana heads the Mowana Five Mile consortium. Kekana later served as regulatory affairs head at Telkom.
Since leaving Parliament in 2002 for the private sector, Kekana’s career path has gravitated towards establishing business interests in the information and communications technology sector. As a shareholder in Business Connexion’s 25% empowerment shareholder Gadlex, Kekana currently serves as an executive director at BCX – which Telkom hopes to buy.
Competition Tribunal permitting, the Gadlex empowerment shareholders – which include Kekana and twin brothers Benjamin and Isaac Mophatlane, who are also part of Mowana Five Mile – stand to pocket close to R600m at Telkom’s current offer price of R9,25c/BCX share.
Telkom’s payout to Gadlex’s black shareholders could just come in time for them to participate in the Vodacom empowerment deal. Another influential figure reported to have an ear open to upcoming high value empowerment deals and a member of the Mowana consortium is former Communications Department deputy director-general Joe Mjwara.
Ironically perhaps, Mjwara served as a member of the ICT Charter steering committee set up to provide empowerment compliance targets for ICT companies.
Former telecoms regulatory body Icasa chairman Mandla Langa, who until recently had been roped in at Vodacom in a consulting capacity through the Mowana consortium, is also said to be eyeing a stake in the cellular operator. Other black consortiums lurking on the fringes of the Vodacom deal include Safika Holdings, owned by ANC national executive committee member and empowerment tycoon Saki Macozoma, as well as Bulelani Ncguka’s Amabubesi Investments.
Finweek
Loading ...