Software maker SAP South Africa is likely to backtrack from its previous plans to increase its black shareholding to 30 percent as it is evaluating other empowerment prospects. <\/p>\n
Last year SAP, one of the first international companies to sell shares to black investors, restructured its local operations into two separate entities: SAP South Africa and sub-Saharan Africa.<\/p>\n
The technology group planned to increase its black shareholding from 10.5 percent held by Blitech to 30 percent, to comply with empowerment regulations.<\/p>\n
Blitech is an investment arm of the Black Information Technology Forum.<\/p>\n
Claas Kuehnemaan, the managing director of SAP South Africa, said on Friday that the board was evaluating other empowerment options.<\/p>\n
He would not comment on whether increasing equity to black shareholders was one of the options.<\/p>\n
Multinationals are allowed to apply for an exemption to invest 25 percent of the value of their local subsidiaries in empowerment projects such as supporting black companies.<\/p>\n