Business Report Economy

Auction Alliance to seek bids for 30% empowerment stake

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Cape Town - Auction Alliance was looking to sell over 30 percent of the company to a black economic empowerment (BEE) shareholder before the end of the year, Rael Levitt, the chief executive, said yesterday.

Levitt said its black management would obtain a stake in the firm ahead of an outside shareholder.

He said that over time black majority control could be a possibility.

Previously, African Harvest had had a considerable stake in the company before an Auction Alliance management buyout.

The company, which has a staff of 120 in eight offices all over South Africa, was a cash generator and in the past financial year to June its turnover reached almost R1 billion.

Levitt said it was easy to sell a business like Auction Alliance to a black empowerment shareholder but the biggest challenge in the industry was to build up "credible" black people.

This was very much on the company's agenda and a top black manager had been appointed to look at transformation within the business and the industry.