BEE deal favours all parties
Fujitsu Siemens joins a host of companies looking to gain access to government tenders with the announcement of its empowerment deal yesterday.
The multinational company is selling a 25percent plus one share stake to a consortium made up of two small IT firms, Thuthukani Information Technology Services and Amava Holdings.
Idris Suleiman, managing director of Fujitsu Siemens Computers, said: "It's more that just an equity transaction, but these are companies we can help build."
The company has been looking to grow its South African operations, however government tenders stipulate procurement from BEE-accredited suppliers.
It has taken Fujiitsu Siemens two years to structure the deal.
Puven Ramasamy, group chief executive officer of Amava Holdings, said: "With this transaction, we continue to emphasise our focus on the IT sector. We have been very successful in the past in transactions within this sector and Fujitsu Siemens Computers, with their portfolio of hardware and services, will complement several of our investments."
Fannie Mahlangu, managing director of Thuthukani, said: "We were looking to this as more than just a pure investment. We want to get our hands dirty. Fujitsu Siemens has been looking to penetrate the public sector, and we have been involved in a few government projects. We are looking to grow our business by 35percent to 40percent this year."