South African family-owned structural steel fabrication and construction company the Cosira Group has concluded a deal with Tshipi Investment Holdings to form the first major black empowered structural steel fabrication and construction firm in South Africa.
The deal, which is subject to Competition Commission approval, has been structured to give Tshipi Investment Holdings 30% equity shareholding, which represents 4% above the minimum 26% stipulated in the mining charter, the company said in a statement.
"One of the things which appealed to us was the fact that Cosira is a family business. When you look at international trends, family driven businesses have always been very successful. While the family is willing to break the mould, we will manage the group as partners," James Nazo, director of Tshipi Investment Holdings, said.
John da Silva (Jnr), MD of the Cosira Group, explained: "After re-evaluating our competitive position and business strategy, where we have focused on becoming a world-class manufacturer, we realised the need to empower people and embrace a black economic empowerment philosophy. As leaders in our industry, we are fortunate to have found a partner with a similar business approach and philosophy."
During the transitional phase in particular, Cosira will address issues such as employment equity and training of all individuals in the group.
"We intend adopting a phased, managed approach to integrating our new partners into the business. We will have set targets to ensure progress, but there will be no radical changes," da Silva commented.
Tshipi Investment Holdings was established in 1996, and operates a joint venture as Tshipi South Africa, with a 70% stake holding.
Engineering News 2004/04/08
Publisher: Engineering News
Source: Engineering News
