Royal Bafokeng Finance will take a 26% stake in the MB Technologies Group to form one of the biggest black-empowered and privately-owned information technology groups in South Africa.
Bafokeng King Kgosi Leruo Molotlegi said the group was attracted to MB Technologies because of its positioning in the local IT market.
”Technology will play an ever increasing strategic role in the development of our nation and we feel that MB Technologies is strongly positioned to assist us in reaching our empowerment and upliftment goals,” Molotlegi said.
The deal between MB Technologies and Royal Bafokeng Finance would be effected through a proportional dilution of the existing shareholding within the MB Technologies’ fold. Royal Bafokeng would pay for its shares in cash.
Leo Baxter, the founder and chairperson of MB Technologies, said the transaction would enable the company to increase its reach into the more cost-effective second and third tier IT market, which was appropriate in the South African market.
”Since government is the most prominent buyer of solutions from the second and third tier market, we believe this will enable us to make inroads into that space,” he said. – Sapa