Johannesburg - Nozala Investments, a 100 percent women-owned black empowerment company, will acquire a 35 percent stake in international procurement and freight forwarding services company Commercial Trading Agency (CTA).
The shareholders' agreement between CTA South Africa and Nozala was signed on Tuesday, but they would not disclose what the stake cost.
CTA has provided outsourced services to mining operations in east and west Africa since 1998, the year it was formed. It is a subsidiary of CTA Commercial Trading Agency, whose headquarters are in Kontich, Belgium.
CTA sources and ships everything from technical equipment to supplies for mining, construction, civil engineering and exploration worldwide.
Managing director Derek Weston said CTA's turnover was between R30 million and R80 million, depending on the number of contracts and projects it had.
Nozala, which means "the one who gives birth", was formed in 1996. Its shareholders are Nozala Holdings (30 percent), Nozala Trust (36 percent), the staff share scheme (10 percent) and other empowerment groups, such as the Rural Women's Movement, (24 percent).
In 2004, Nozala used R104 million in excess cash to buy out the stake held by its institutional shareholders.
Nozala's chief executive and vice-chairman, Salukazi Dakile-Hlongwane, felt that funding empowerment companies through special purpose vehicles meant institutional investors actually owned most of Nozala.
Nozala now focuses on investments in resources and resource services, including interests in Kumba Resources and Sasol/ Excel. It also has stakes in Educor, Curamed, Radio Jacaranda, Tsebo and Nexus Connexion.
Weston said: "We look forward to networking with other market sectors through Nozala Investments' existing interests in the information and communication technology and local resources and services sectors as they promise new opportunities.
"CTA South Africa is especially excited at the prospect of contributing to sustainable social development through the Nozala Trust, which empowers black women entrepreneurs through financial and technical assistance."
Weston said the company would concentrate on local industry to create more wealth and value in South Africa. The company would not change its name in the near future, because it wanted to retain its brand.
Dakile-Hlongwane said: "With our joint focus on mining and related industries, CTA South Africa fits the bill perfectly."
She said Nozala was now exploring opportunities in coal, chrome and platinum mining.
The CTA deal is Nozala's fifth in the past 12 months.
In December 2004, the Capespan Group announced that Nozala was its preferred lead empowerment consortium partner to take up equity in Capespan's wholly owned subsidiary, Fresh Produce Terminals.
In November 2004, Lazare Kaplan International (LKI) announced that it had signed an agreement with Nozala for co-operation in South Africa's diamond sector. They would start with downstream diamond cutting, polishing and distribution as a precursor to prospective joint upstream projects.
LKI is the only publicly listed company in the US that specialises in these services for the world's largest diamond market.