Africa Heritage Investments, a 100% black controlled company, has acquired a 50,1% stake in Krohne in SA, a wholly owned subsidiary of Krohne of Germany, in what has been dubbed as a landmark deal involving a foreign company.
Krohne, which has been in operation in South Africa for 20 years, is a leading supplier of proprietary process control instrumentation with wide applications in the mining, oil and gas and allied industries.
Speaking at a signing ceremony in Johannesburg yesterday, John Boxley, the chief executive of Krohne, said the transaction provided a platform for Krohne to significantly grow its business in South Africa and the rest of the African continent.
Mutumwa Mawere (left), a director of Africa Heritage Investments shakes hands with John Boxley, CEO of Krohne
"This is an historic deal not only in terms of the quantum of shareholding conferred to BEE shareholders in line with the policy framework in South Africa but in its trendsetting approach in creating and supporting sustainable African controlled solutions. We are excited about the prospects for our state-of-the-art technology in Africa as well as the business fundamentals that underpin this transaction. The fact that Krohne will benefit from the experience of a BEE institutional shareholder is significant largely because of the untapped and growing African market for products in Africa," he said.
Mutumwa Mawere, a director of AHI said: "This transaction should be seen in a much broader context than normal BEE deals. We are cognisant that taking a majority stake in any company carries enormous obligation on our part to significantly add value to Krohne. If we do our part as we expect, we have no doubt that this transaction will provide a demonstration case for other foreign owned companies on how to structure 'win-win' partnership deals."
AHI is a broad-based BEE investment holding company with interests in a number of companies. The company provides key strategic and marketing support to its underlying investments. AHI is wholly owned by a discretionary trust, Africa Heritage Trust (AHT) that has designated members of Africa Heritage Society (AHS) drawn from the previously disadvantaged groups as its beneficiaries. Through the society, AHI facilitates the bridging of the knowledge, execution and capital gaps that are endemic in the black community as well as supporting the development of black entrepreneurs and community projects that are broad-based and developmental in nature. AHI has developed a strong black record in terms of its tangible contribution at strategic and operational levels to its investments.
For more information contact Kruben Bennie, Krohne, 011 315 2685, [email protected]
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