CSG to gain strategic BEE shareholder
AfriGem Investments a wholly owned subsidiary of Patrice Motsepe’s African Rainbow Capital (ARC), will subscribe for 8.3%, or 41-million, of JSE-listed CSG Holding’s shares, the companies announced Wednesday.
AfriGem has a 99% broad-based black ownership, including church groups, trade unions and women’s groups, and will pay R1.18 a share for a total consideration of R48.3-million.
The issue price is equal to CSG’s 30-day volume-weighted average trading for the 30 trading day period that ended October 6, less a 15% discount.
This transaction will result in CSG having a black economic empowerment (BEE) shareholding in excess of 30%.
“This cash injection will bolster our reserves to allow the group to continue its strategy of expanding acquisitively into a well recognised leading brand in all of our chosen specialist outsourcing sectors, without diluting our BEE shareholding. AfriGem has indicated that its intention is to be a long-term investor,” says CEO Pieter Dry.
He added that CSG would maintain its focus on the management of people and employee-intensive outsource solutions, incorporating technology in industries the company knows well.
CSG Group reported a 43% improvement in revenue to R832.8-million in the six months to September 30, as well as an operating profit of R61.3-million, which showed a 32% increase.
The improvement in revenue and operating profit was achieved through organic and acquisitive growth.
The group’s gross profit margin increased to 21.6%, up from 19.2% in the comparative period, while headline earnings a share and earnings a share decreased by 2%.
Cash generated from operating activities before working capital changes increased to R65.8-million.
Net cash generated from operating activities improved to R53.8-million, up from R9.4-million in the comparative period.
The cash conversion ratio of the group improved to 107% for the six-month period.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation














