Within the scope of a strategic transaction aimed at boosting the group’s local black economic-empowerment (BEE) threshold, global testing, certification, inspection and training provider TÜV SÜD South Africa plans to sell 26% of its entire issued share capital to investment group Kapela Holdings and other partners.
“By undertaking this transaction, we are fulfilling our responsibility as a South African subsidiary of an international group of companies.
“In addition to complying with the BEE Act, the transaction will also strengthen our company's position in the South African market and secures our business relations, especially with State-owned or parastatal companies," commented TÜV SÜD CEO Leon Nel.
He added that the share sale had prompted the company to bundle all its fields of activities under the umbrella of a holding company and align them to the structure of the TÜV SÜD group.
“Our corporate structures in South Africa have developed historically. By streamlining and restructuring our company within the scope of the current BEE transaction, we can further improve our services, which will benefit our clients,” explained TÜV SÜD Middle East/Africa region CFO Dieter Schlunek.
The integration of Kapela Holdings into the board of TÜV SÜD South Africa would be a further step in this direction, he remarked.
TÜV SÜD South Africa employed almost 460 staff, generating around 14-million in revenue. Key focus areas included inspection and test services for the energy industry, lift services, vehicle inspections and certification of the quality-management systems of companies