Henkel, the German maker of Persil washing powder, said on Wednesday it was selling a stake in its South African unit to a group of black investors as part of a campaign to involve black South Africans ”more fully in their country’s economic activity”.
Henkel said in a statement it had sold a 26% stake in its South African business to Vuya Investments, an investment vehicle for disadvantaged people in South Africa.
The sale was effective from January 1. Financial details were not disclosed.
Henkel’s move supported the government-sponsored black economic empowerment (BEE) initiative that was ”geared toward enabling the black population of South Africa to participate more fully in their country’s economic activity”, the German company said.
Under the BEE campaign, the South African government had, since 2004, ”been pursuing the objective of redressing equality issues and encouraging active participation of the once disadvantaged black majority in the economic life of the country”, Henkel explained.
”The black economic empowerment initiative is important for cementing domestic political stability and creating the kind of conditions required in the long term for social and economic harmony in South Africa,” said Henkel chairperson Ulrich Lehner.
”It was important to find the right partner, and Vuya fits the bill perfectly. Its shares are both widely spread and largely held by formerly disadvantaged population groupings.”
Henkel is active in South Africa via its brands of adhesives such as Pritt, Pattex, Loctite or Teroson, as well its Schwarzkopf haircare products.
It employs a workforce of around 300 at its factory in Johannesburg and in sales offices in Cape Town, Port Elizabeth, Durban and East London. – AFP