KTH delivers on its strategy with acquiring of Servest

Firm secures 51 percent stake

KAGISO Tiso Holdings (KTH) has secured a 51 percent stake in Servest, in a transaction valuing the acquired company at R4.5 billion, the black investment company said yesterday.

KTH said the acquisition would form the largest, majority black-owned facilities management company in Africa.

It said the Servest investment offers a compelling proposition, consistent with KTH’s strategy, as the business has significant presence in South Africa, the UK, and the rest of Africa, with multi-currency earnings.

“Servest provides integrated facilities management solutions to more than 6 500 clients on 24 000 sites in South Africa, with key markets in East, West and Southern Africa as well as the UK.

“Key services include, inter alia, cleaning, parking, catering, hygiene, office service, landscaping to prominent clients such as Transnet, Netcare Group, Anglo Platinum, Debswana, Sasol, Sainsbury, BBC and UK’s House of Parliament, among others.”

KTH is one of the largest pan-African investment holding companies, with an investment portfolio comprising market leading companies across its chosen sectors and geographies. The group has an asset base in excess of R15bn.

Vuyisa Nkonyeni, chief executive of KTH, said: “This trans- action demonstrates clear delivery against KTH’s strategy of acquiring meaningful or majority stakes in fast growing companies, which are supported by strong management teams and have good exposure to African market opportunities.”

He said in the South African market, Servest would identify investments that would afford it significant influence or control alongside like-minded partners.

KTH has been executing its strategy of becoming an emerging pan-African investment champion, having concluded transactions which involved R5.1bn of disposals, follow-on investments and portfolio restructurings to date.

KTH says it expects to conclude another significant acquisition in West Africa soon.

Servest co-founder and group chairman, Kenton Fine, said: “We have enjoyed a very successful and long-standing relationship with our existing shareholders, RMB Corvest and Shalamuka, and are delighted at the prospect of partnering with a professional organisation of the calibre of KTH.

“With similar values entrenched in both organisations, we look forward to embracing additional experience and knowledge that KTH will bring, further underpinning our continued ambitious growth strategy into the future.”

The acquisition remains subject to regulatory approvals, including by the SA Competition Commission.