Johannesburg - Izingwe consortium, led by the former director of Nedcor Sipho Pityana, has snapped up a 30 percent stake in power and telecommunications cable maker Aberdare Cables for R165 million.
The deal, which values Aberdare at R550 million, will allow Izingwe to help Aberdare tackle opportunities on the continent provided by the New Partnership for Africa's Development (Nepad).
Izingwe consortium consists of Izingwe Capital, with a 20 percent stake, Hlumani Women Investments, owning 4 percent, and the remaining 6 percent held by Matomo, which was controlling 10 percent of Aberdare.
According to the transaction Power Technologies, which is a subsidiary of Allied Electronics (Altron), will reduce its 90 percent stake in Aberdare by 20 percent.
Pityana will be appointed as the deputy chairman of Aberdare Cables.
Dali Mpofu, the head of Altron's transformation forum, said that Pityana's understanding of the infrastructure need in Africa fitted in well with Aberdare's strategy of contributing into the development of the continent.
The consortium will be buying a stake in a company that has more than R2 billion in turnover with six manufacturing plants and 2 500 employees.
"We have studied the company and after seeing their products we have realised that they are relevant to certain parts of Africa," said Pityana.
He said the consortium would help Aberdare to play a bigger role in the electrification of the African continent by positioning it to benefit from a hydroelectric project in the Democratic Republic of Congo, known as the Inga project.
Pityana said the deal was not a cosy relationship where the consortium was looking for handouts.
"We will be actively participating in the business to ensure the company performs," he said. "We are not a bunch of philanthropists," he said.
Hans Meiring, the chief executive of Aberdare, said the consortium would help the company to gain businesses from the second network operator and those offered by Nepad.
"We have already achieved something with Eskom Enterprises in electrifying Nigeria. It is our target that our exports reach the R200 million mark by 2006," he said.
Aberdare already contributes R85 million to affirmative procurement, 1.8 percent of payroll on training and development, and 36 percent of black people are represented at management level.