Fenner South Africa, a manufacturer and distributor of fire-resistant conveyor belting to the local coal-mining industry in which it commands a 75% to 80% market share, has become the first of its sector to conclude a black economic empowerment (BEE) partnership, the company said in a statement on Tuesday.
The landmark announcement marks the sale of 25% plus one share of its issued share capital to Peotona Group Holdings, a women’s investment and development company founded by Cheryl Carolus, Wendy Lucas-Bull, Dolly Mokgatle and Thandi Orleyn. The deal will become effective within 60 days.
The Isando-based Fenner SA is a wholly-owned subsidiary of the London Stock Exchange-listed Fenner plc, a manufacturer of reinforced polymer technology whose history spans almost 150 years.
The United Kingdom-based parent company now has annualised turnover of more than £350-million and employs almost 3 500 employees across five continents. In addition to South Africa, Fenner operates in the United States, Canada, Europe, China, India and Australia.
Commenting on the BEE announcement, Fenner plc chief executive Mark Abrahams said: “Our long connection with the South African mining industry, the country’s most important economic sector, indicates that we are fully committed in continuing to play a sustaining role in its future.
“In signing this historic deal we have indicated our unequivocal intention to wholeheartedly support and contribute to the South African government’s ideals of industry transformation and the ongoing success of the wider South African economy.”
Frank Ledger, MD of Fenner SA, added: “The process we have gone through in reaching today’s milestone has taken over six months. We had to be absolutely sure that the company selected as our empowerment partner could contribute real value to our business across a range of activities.
“It was also important that, together with strong business skills and experience, we had to ensure our chosen partner’s operating values were aligned totally with our commitment and vision to drive the Fenner conveyor-belting business forward.”
Fenner SA — one of the Fenner Group’s key contributors — employs 120 staff and specialises in the manufacture and distribution of solid woven, textile-reinforced PVC and Nitrile fire-resistant belting manufactured to the South African National Standards for fiery mines (SANS 971 2003) for use in underground mining.
Peotona’s executive chairperson, Carolus, a former South African high commissioner in London, stated: “We are naturally honoured to have been selected as Fenner SA’s preferred empowerment partner, most especially given the Fenner Group’s enviable position as the world’s largest supplier and manufacturer of essential mining equipment.
“We look forward to working with our new South African partners to further the company’s success and to providing the strategic support that, encompassing a distinct competitive advantage, will assist it to leverage additional business growth opportunities.” — I-Net Bridge