North West-based empowerment company Bafokeng Investment Services has for R5,4-million acquired six million shares, or a 27% stake, in IT group Alliance Data Corporation Holdings (ADC), the AltX-listed firm announced on Tuesday.
ADC provides software solutions focused on the mining industry, with a number of mining houses forming part of its customer base.
The deal has resulted in 27% of ADC’s shareholding being held directly by black economic empowerment (BEE) investors, and this ensures that the IT company is fully compliant with the BEE objectives of the technology and mining sector charters.
The deal also expands ADC’s presence in the mining town of Rustenburg, providing the firm with the opportunity to market its solutions to mines in that area of the North West province.
ADC chief executive Eugene de Kok said Bafokeng Investment is a fully empowered company, owned by Peter Maema, who has been appointed a director to the ADC board.
The BEE holding will facilitate the growth of ADC’s business and will introduce and help to retain the critical skills base that is essential to the firm’s business and growth, De Kok added.
Royal Bafokeng Economic Board (RBEB) MD Matome Modipa said: “The RBEB was established by the Bafokeng community to facilitate transactions that will lead to the economic upliftment of the community.”
ADC recently announced its maiden results as a listed company, where it reported headline earnings per share of 18,3 cents for the year ended February 2005. Earnings were 37% up on the previous period and the IT firm anticipates further increases in the new financial year. — I-Net Bridge