/ 20 October 2004

Absa lends a hand in BEE construction deal

Absa Corporate and Merchant Bank (ACMB), corporate advisers to Matlapeng Strategic Investments, has assisted with the acquisition of a 25% shareholding in the share capital of Raubex Construction.

Matlapeng Holdings has two key focus areas: Matlapeng Strategic Investments and Matlapeng Resources. The major stakeholders in Matlapeng Holdings are the Black Managers Forum Investments and Kopano ke Matla, making it a broad-based black economic empowerment (BEE) company comprising more than two million historically disadvantaged beneficiaries.

Kopano ke Matla is the investment arm of the Congress of South African Trade Unions.

The Raubex transaction, which was closed on October 2, gives Matlapeng — by way of its investment in Raubex Construction — the opportunity to expand on Raubex’s national presence in the civil construction industry.

“With the anticipated increase in infrastructure expenditure leading up to the 2010 Soccer World Cup, as well as for Gautrain, Matlapeng is committed to adding value, specifically in industries where we have the ability to contribute operationally and strategically,” said Matlapeng CEO Francois Diedrechsen.

From a Matlapeng Resources perspective, Matlapeng intends making key investments in South Africa’s mining industry. To date, Matlapeng has significant initiatives under way in commodities such as coal, ferro-chrome and platinum. Matlapeng hopes to make some announcements in this regard in the short to medium term.

Matlapeng Strategic Investments is also aiming to assist the Free State province in its drive against unemployment by way of its investments in both Raubex and Talknet Holdings, which provides a low-cost entrepreneurial product.

Free State Premier Beatrice Marshoff congratulated the two companies on the signing of the deal and said: “We are not only celebrating the maturing of a business enterprise, but the resilience of a correct idea, that for us to build a unified nation based on equality and justice, we must ensure that the economy of this country is in the hands of all our people.”

Paul Smith, head of ACMB Resources Corporate Finance, commented: “ACMB regards Matlapeng as a key empowerment player in the field of resources and infrastructure in South Africa and will therefore be offering Matlapeng its support going forward.

“This support is in line with ACMB’s strategy of partnering successful empowerment players in the development of their business on a sustainable basis.” — I-Net Bridge