Within the scope of a strategic transaction, TÜV SÜD South Africa will sell 26 per cent of its entire issued share capital to Kapela Holdings and other partners. The transaction takes place as part of the organisation’s Black Economic Empowerment (BEE) Initiative. TÜV SÜD South Africa will use the opportunity to optimize the company’s structures.
“By undertaking this transaction, we are fulfilling our responsibility as a South African subsidiary of an international group of companies“, says Leon Nel, CEO of TÜV SÜD South Africa. “In addition to implementing the Black Economic Empowerment Act, the transaction will also strengthen our company’s position in the South African market and secures our business relations especially with state owned or parastatal companies.” TÜV SÜD South Africa employs almost 460 staff generating around EUR 14 million in revenue. Key focus areas include inspection and test services for the energy industry, lift services, vehicle inspections and certification of the quality-management systems of companies.
TÜV SÜD South Africa’s sale of 26 per cent of its issued share capital to Kapela Holdings has prompted the company to bundle all its fields of activities under the umbrella of a holding company and align them to the structure of the TÜV SÜD Group. “Our corporate structures in South Africa have developed historically”, explains Dieter Schlunek, CFO of the Region Middle East / Africa of TÜV SÜD. “By streamlining and restructuring our company within the scope of the current BEE transaction we can further improve our services, which will benefit our clients.”
The integration of Kapela Holdings into the Board of Management of TÜV SÜD South Africa will be a further step in this direction. “Kapela is a professional black empowerment group with substantial business experience and networks”, says Leon Nel of TÜV SÜD. The Kapela consortium also includes a non-profit organization, Disability Empowerment Consortium which represents over 2 million people with disabilities and majority being black.
Israel Skosana, the Executive Chairman of Kapela says “We are excited to be an investor in TÜV SÜD South Africa, the Kapela team is looking forward in working with TÜV SÜD management growing the company and thus creating shareholder value.”
The Black Economic Empowerment Act of 2003 was passed by the government of South Africa to create a mechanism for affirmative action and to redress the inequalities of the past. The BEE Act also allows for the development of Codes of Good Practice, which define certain requirements for companies.
Press-contact: Leon Nel