Johannesburg | Wednesday
TWO South African black empowerment companies signed an agreement on Tuesday with BP’s South African subsidiary to acquire a 25% stake in its local downstream operations, company officials said.
The deal, involving the Mineworkers Investment Company (MIC) and Women’s Development Banking Investment Holdings (WDBIH), is in line with the government’s objective of securing 25% black ownership in the energy industry within 10 years.
”We believe the deal is unique,” BP South Africa Chairman Fred Phaswana said at a news conference.
”We needed partners who have some resonance in the previously disadvantaged group,” he added.
The partners declined to give details on the value of the deal, in which MIC took a 17,5% stake and WDBIH gained a 7,5 % share.
BP South Africa, which has an estimated annual turnover of R500-million ($60-million), was previously 100% owned by London-based BP Plc.
Phaswana said another 30% stake in the joint venture was reserved for other black empowerment firms. That stake would be offloaded within 15-18 months, giving the black firms a controlling stake.
”That’s where we want to be. That’s the future of this country,” Phaswana added.
Last month Royal Dutch/Shell’s South African subsidiary signed a conditional agreement with black empowerment group Thebe Investment Corp for a 25% stake in its downstreaming oil marketing business. – Reuters