Telkom chairman Jabu Mabuza is buying a 10% stake in black-owned investment company Sphere Holdings in what the latter is describing as a “step-change for professional black business in South Africa”.
Mabuza will also take on the role of Sphere’s executive chairman and will have a hands-on role.
The company says it plans to raise a R500m to R1bn “war chest” and to focus on acquiring majority stakes and operational influence in midsized companies.
Mabuza’s role will involve capital raising, deal origination and adding value to Sphere’s existing investment portfolio.
Sphere Holdings, which was founded in 2003, is led by co-founder Itumeleng Kgaboesele, a former investment banker and charted accountant. It has a portfolio of interest in industrial goods and services firms such as Babcock Engineering, Babcock Target Plant Services, Pandrol and Honeywell.
Mabuza, who is also president of Business Unity South Africa, says in a statement that
Kgaboesele says in a statement that Spehere will look to acquire majority or leading stakes in midsized companies valued at between R500m and R1bn.
“We will of course remain open to co-invest with partners and accept influential minority positions in larger businesses,” he says. “We’re not going to be rigid, we’ll be strategic. We will keep a disciplined focus on our priority target sectors including: industrial, business to business services and manufacturing.
“We believe our redefined strategy and focus places us in a very advantageous position to take advantage of the current deal climate. Sphere has the technical capacity, proven track
record and capital raising ability to play a role in the creation of black controlled and influenced industrial companies. Sphere’s balance sheet means we have the equity to determine our own investment strategy.” — © 2015 NewsCentral Media
