Photo by: Duane Daws
Switzerland-based overhead line equipment company Pfisterer Sefag on Friday announced that it would be selling 100% of its share interest in Pietermaritzburg-based Pfisterer South Africa to comply with the subsidiary's largest client, State-owned power utility Eskom’s, transformation and empowerment requirements.
Eskom’s transformation and empowerment agenda, which was instituted in 2012, demanded 51% black and 30% black female ownership of its suppliers.
Pfisterer Sefag said in a media release that the sale process of its Pfisterer South Africa shares had been conducted in consultation with Eskom, which vetted all potential buyers.
The company added that it was envisaged that current Pfisterer South Africa black economic-empowerment partner Orene Maphosa Mnguni would be a major shareholder in any agreed deal.
“It is important to agree [on] a transaction between all of the stakeholders that underpinned the long-term sustainability and current employment of some 500 employees at the Pietermaritzburg factory,” Pfisterer Sefag chairperson Michael Keinert commented
He added that the Pfisterer group expected that a strong relationship would endure between the group and the South African businesses following the sale.
Meanwhile, Mnguni said she was “excited to be at a point where this profitable business becomes South African owned”.
“The business has built a very respectable record, delivering highly technical and [high-] quality electrical equipment to its key customers. This potential deal will enable Eskom to continue to procure our electrical products and allows us to focus more heavily on growing [our presence in the] Southern African markets,” she added.
The sale consideration and negotiations were still subject to a confidentiality agreement.