The National Empowerment Fund (NEF) has concluded an
investment deal to finance the 100% buy-out of a manufacturer
of colliery dust control systems by an empowerment consortium.
The R41,9-million investment involves a partnership
between the consortium, which is led by Babalwa Geza, and
the existing management of Colliery Dust Control (CDC).
According to NEF, the deal structure leverages the skills sets of
the consortium and that of the existing management and facilitates
skills transfer to ensure business continuity and growth.
"In line with the NEF's mandate, this transaction not only
represents meaningful empowerment in the strategic energy
sector, but also represents the empowerment of women in the
industry, with approximately 35% of the CDC shareholders now
consisting of women," imparts chief investment officer of the
NEF, Frencel Gillion. He adds that the deal represents a successful
step in the transformation of the mining services sector,
with the empowerment of niche support providers such as CDC
complementing government's transformation objectives for the
mining and energy sectors.
Geza, who has assumed the role of deputy managing director,
says, "The mining and energy sectors are of critical importance
to South Africa, and providing coal in an efficient and safe
manner is one of our biggest strategic challenges as a country."
She adds, "This is why, as a company, we've set up both a
management trust and a staff trust to ensure that everyone has
a stake in the future of the business and to retain the extraordinary
knowledge and skills capital vested in our people."
According to Gillion, the NEF has made the first disbursement
of the R41,9-million to finance the purchase and to provide
working capital during the transition phase. "The establishment
of the trusts was fundamental to the deal," tells Geza.
"By means of these mechanisms, past effort has been recognised
and rewarded, participation in ownership ensured and our
skills and experience base secured. Now, with the support of
our people, we're ready to take on any challenges that might
come our way."