Unlisted black-owned Calulo Investments has — for an undisclosed amount — snatched a 15% shareholding in Chlor-Alkali Holdings-held NCP Chlorchem, the company announced on Wednesday.
Calulo chairperson Mkhuseli Faku and MD Mpho Diale have, as a result, joined the NCP board.
Faku, who studied at Rhodes and Wits Business School, is a non-executive director at Total South Africa. Diale, with a strong corporate finance background, has experience at international level and holds a BSc in economics and finance from the United States.
Calulo — an energy, resources and property group — already has a 75% stake in a new chemicals company, CalChem, with Investec Private Equity holding the remaining 25% interest.
NCP’s turnover is more than R500-million and it employs 332 people.
NCP has about 35% of current chlor-alkali capacity in South Africa and produces products such as bulk chlorine, caustic soda lye, hydrochloric acid and other speciality chemicals. Its clientele includes various water boards, municipalities and mining houses.
The subsidiary has raised substantial capital for expansion and for strategic acquisitions, the investment firm said.
The parent company is expected to play a major role in ensuring NCP’s growth prospects in Africa — the subsidiary already has a presence in countries such as Botswana, Mauritius and Nigeria. Further afield, NCP has operations in Argentina, Brazil and Singapore.
NCP’s shareholder base comprises the employee trust (6%) and Investec Bank (49%), with the remainder in NPC management’s hands.
“Calulo’s track record in the petrochemical sector, and their commitment to an understanding of the transforming business landscape in the region, made them an obvious choice for a value-adding partner in NCP Chlorchem,” said Barney Steyn, MD at NCP.
Faku expects the deal to help pave the way for the Calulo’s participation in the chemicals arena, where it aims to become a major player. — I-Net Bridge