BT strengthens Sth African op

RNS Number : 4603H

BT Group PLC

05 November 2008

 



DC08- 395                            5th November 2008

BT PARTNERS WITH SEKUNJALO TO STRENGTHEN

SOUTH AFRICAN OPERATIONS

BT today announced it has entered into an agreement with Sekunjalo Investments Limited, under which Sekunjalo will become a 30 per cent shareholder in BT's South African business.

The deal demonstrates BT's commitment to the Broad-Based Black Economic Empowerment (B-BBEE) agenda and will provide opportunities for both parties to accelerate their growth. The agreement is subject to approval by the South African Reserve Bank.

BT has been present in South Africa for more than 16 years and has grown the South African business to serve an impressive list of more than 300 clients, including several locally-based multinationals.

Sekunjalo was established in May 1996 as a black-controlled economic empowerment group to benefit previously disadvantaged individuals through job creation. The company is listed on the Johannesburg Stock Exchange.

In 2006 Sekunjalo was recognised as South Africa's Top Empowerment Company by the authoritative Financial Mail/Empowerdex Survey of Top 200 listed companies. The following year, the company was selected as one of the top 125 New Champions Global Growth Companies by the World Economic Forum (WEF). 

Sekunjalo has strong roots amongst historically disadvantaged individuals and community organisations. These groups form over 80 per cent of Sekunjalo's shareholder base. 

    Brian Armstrong, BT Vice President, Middle East and Africa, said: "We are delighted to be able to partner with such a high-profile empowerment group as Sekunjalo. This clearly represents another milestone in BT's development in South Africa and opens a whole raft of new business possibilities for BT."

Mo Kajee, CEO, Sekunjalo Investments, said: "We are extremely excited to partner with BT, one of the world's leading providers of communications solutions and services. BT has a long track record of success not only in South Africa, but Africa as a whole, and we are excited about the new opportunities this partnership brings to both BT and Sekunjalo."

Under the terms of the agreement and subject to the approval of the South African Reserve Bank, a Sekunjalo investment vehicle will subscribe for shares equal to 30 per cent of the entire issued share capital of BT's South African entity.   The total subscription price of 27 million Rand in cash is being vendor financed by BT.  Sekunjalo will appoint two representatives to BT's South African board.  The remaining five members will be BT appointed representatives.

Ends.

About BT

BT is one of the world's leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2008, BT Group's revenue was £20,704 million with profit before taxation and specific items of £2,506 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.  

For more information, visit www.bt.com/aboutbt

About Sekunjalo Investments

Sekunjalo Investments Limited is a black-controlled investment holding company, with an investment philosophy which follows sound business principles and practices in its quest to create wealth for all of its shareholders. It identifies and promotes entrepreneurs with potential and flair in its prospective business ventures.

Sekunjalo has rapidly grown in stature as a successful, diversified and financially driven Group, which is innovative, with an aggressive strategy to achieve growth in the value of its investments.  Sekunjalo is invested in two primary sectors, namely Manufacturing and Resource-driven and Technology and Innovation-driven sectors. Within the Manufacturing and Resource-driven sectors, the major investments are in Industrials (primarily fishing) and within the Technology and Innovation-driven sectors, the major investments are in Healthcare and Pharmaceuticals, Information Technology and Communication, Aquaculture, Financial Services and Biotechnology.

Sekunjalo also has an extensive corporate social investment (CSI) programme, which is fully integrated with its business practices. These include CSI in different areas and fields, including skills development, enterprise development, procurement, and ensuring that employment equity structures and programmes are in place within the Group.

For more information, visit www.sekunjalo.com

 

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