Kagiso Strategic Investments, the investment arm of the Kagiso Charitable Trust, has acquired a 25,1% stake in South Africa’s fastest-growing vehicle-recovery operator, Matrix Vehicle Tracking, for an undisclosed amount, Kagiso said on Thursday.
Distinguishing the transaction, the group noted, is Kagiso’s upfront multimillion-rand cash payment in full for its direct stake in Matrix, effective from January 1. Matrix’s operations are valued at approximately R200-million after a fair discounting for black economic empowerment (BEE).
Matrix CEO Stefan Joss commented: “The Kagiso trust’s wide reach gives Matrix the confidence that, in partnering Kagiso, we will be contributing to broad-based empowerment. The deal is the result of a three-year search for a BEE partner.
“From a Matrix perspective, it makes sense only to take on a BEE partner that will at the same time assist in growing our operation and give effect to our corporate philosophy of broad-based empowerment and transformation.”
Joss added that Kagiso will be hands-on in driving the company’s growth.
“Matrix will leverage the wide commercial network of Kagiso’s patrons and trustees, many of whom sit as directors on the boards of other major South African businesses.”
Kagiso will also assist Matrix in achieving transformation objectives within the company by identifying and accelerating appropriate previously disadvantaged individual (PDI) appointments at middle and senior management levels.
Approximately 55% of Matrix’s 190-strong staff complement is currently made up of PDIs.
According to the CEO, the returns realised from the investment will devolve to the Kagiso trust to continue its charitable initiatives totalling R1-billion to date, which have benefited more than 5 000 projects aimed at sustainable financial and social development in rural and previously disadvantaged communities.
Afzal Patel, an executive of Kagiso, has also been appointed to Matrix’s board as a non-executive director. — I-Net Bridge