PAMODZI ACQUIRES A 60% STAKE IN SIYANDA

BLACK-OWNED investment company, Pamodzi Group yesterday acquired a 60 percent stake of Siyanda Petroleum to leverage its downstream supply chain activity. Siyanda Petroleum is an oil and gas distribution company that markets and sells diesel, petrol, jet fuel, liquid petroleum gas and lubricants. It has been operating in the industry for almost two decades and has a turnover of abut R1.5 billion. The company has wholesale licences and import permits and has been able to establish longterm arrangements with international oil refineries with shipping, terminal and storage capabilities. Pamodzi’s strategy is to invest in growth sectors like mining, trucking, engineering, and agriculture, to grow its portfolio and partner with credible delivery partners and institutions to realise its vision. The group said its downstream supply chain activity makes business sense to vertically integrate into Siyanda Petroleum’s operations. Pamodzi’s executive director Sihle Mkhize said the business deal bodes well with Pamodzi’s vision of being a conglomerate with an entrepreneurial flair that benefits all its stakeholders. Though he could not disclose the amount of the transaction, Mkhize said the deal would put the company on a scale to compete with major companies in the petroleum industry. “This is a significant deal which will enable the company to transform and compete in this tough petroleum industry,” Mkhize said. “We are pleased to have secured the business and we believe it is historic and important for black companies to play in this space, hence we took this giant step.” Mkhize said Pamodzi and Siyanda were still completing certain conditions of the deal, but Siyanda’s current shareholders would retain the 40 percent.