AEEI nets stake in IT firm
Deal with Puleng Technologies will grow technology division across JSE-listed group
AFRICAN Equity Empowerment Investments (AEEI) has acquired a major stake in IT firm Puleng Technologies. The JSE-listed broad-based black economic empowerment (B-BBEE) firm announced this week it had acquired a majority shareholding of 57 percent equity in the information technology company.
The group has investment in food and fishing, technology, health and biotherapeutics, events and tourism, all supporting broad-based black economic empowerment and small, medium and micro enterprises (SMMEs).
The group also holds strategic investments in British Telecoms South Africa, Saab Grintek Defence, Pioneer Foods and Sygnia Limited.
The acquisition was effective from October 1, which serves as evidence of the equity firm’s resolve to implement the objectives of its “Vision 2020 Vision” strategic roadmap that sees it growing its underlying assets and investments.
Group chief executive, Khalid Abdulla, said: “We welcome Puleng to the AEEI stable. The deal is significant for AEEI with its estimated additional R200 million annual revenue to the group which will complement and grow our technology division with additional technical skills across the group, innovation, world-class support to AEEI’s clients and strong returns on investments.”
Abdulla added the key to the success of the firm’s strategy was its ability to implement and add long-term value to the businesses it invested in.
Puleng’s managing director, Paul Thompson, said the partnership was critical to the firm which after 12 years of growth was now focused on the next level of development.
“Puleng’s agility and sensitivity to its current and future market trends will enable it to leverage AEEI’s enviable presence, reputation and position in the market, which also provides us a platform for future exponential growth for the benefit of all concerned.”
It is anticipated AEEI’s investment into Puleng Technologies will have a pay-back period of three years, which excludes the exponential capital appreciation expected from the investment.
Abdulla said a sizeable percentage of AEEI’s value now resided in its technology division and the deal with Puleng was another indication of how the firm’s ambition to realise the goals and objectives that it had set out in its strategy, was coming to fruition.
“Our growth strategy is underpinned by our diverse portfolio and is reflected in our results.”
The group also announced yesterday its record turnover and excellent earnings growth as a result of contributions from its underlying operations and investments for the year under review.
AEEI confirmed its revenue increased by 12 percent from R672m to R752m driven by growth and the expansion of its operations into new markets.
Abdulla said this financial year was filled with global and local challenges across all fronts – political, economic and social.
“But we buckled down, remaining singularly focused on reaching our pre-identified goals.”
WE BUCKLED DOWN, REMAINING SINGULARLY FOCUSED ON REACHING OUR PRE-IDENTIFIED GOALS