Biz Africa 1320, a Middelburg company that provides a number of services and products to the mining industry, has entered into a substantial black economic empowerment (BEE) transaction with a broad-based BEE consortium led by Sakhumnotho Mining, the company said in a statement this week.
In terms of the agreement, signed on Monday, Sakhumnotho and its consortium partners — Africa Best Financial Services and Aguleruo Investment Holdings — will acquire 51% of Biz Africa.
Biz Africa supplies services and products in the mining industry including roof-support equipment, shuttle cars, service vehicles, face drills, forklifts and load-hall dumpers
Biz Africa MD Martin Pretorius said he is delighted that his company can start the year with such an important transaction.
“We view this transaction as a strategic one with our eyes firmly fixed on the future. We want to be fully BEE compliant and for that reason sold a majority share in our business. We know we have high-quality products and this new partnership will make us even more competitive” Pretorius said.
Sipho Mseleku, chairperson of Sakhumnotho, said he is confident that the new combination of skills, networks and business acumen on both sides will result in the accelerated growth of the company.
Mseleku, who is the chairperson-elect of the company, indicated that Sakhumnotho made the investment because it made good business sense and because of the synergies between the partners entering into the agreement.
“We believe that it is a win-win situation where all parties to the agreement will add substantial value to the final product,” he said.