Stocks, Leswikeng build partnership

Posted On Friday, 05 December 2003 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

STOCKS Building Africa (SBA) which has R360m worth of assets and a an order book of R1,5bn has signed a deal with Leswikeng Building

Construction IndustrySTOCKS Building Africa (SBA) which has R360m worth of assets and a an order book of R1,5bn has signed a deal with Leswikeng Building, enabling the black economic empowerment group to acquire a 30% stake in one of the country's largest unlisted building contractors.

SBA CEO Tom Hendry and Leswikeng chairman Herman Mashaba were mum on the financial aspects of the transaction, saying that they did not want to give competitors an advantage. It is believed, however, that the deal is worth at least about R100m.

Mashaba, who created the Black Like Me brand in the mid1980s and is still CEO of the group, will become nonexecutive chairman of SBA, while Max Sisulu will be the other Leswikeng representative on the board.

Explaining the deal, Hendry said his company supported government's desire to see more black people empowered in business, in terms of shareholding and operational management.

He said that with its new empowerment credentials, the company would "take on something of a new flavour and profile".

"We should be better positioned to attract young people of colour to come into our industry at middle and top management levels, which is where they are missing at present."

Hendry said SBA would also see access to new markets through their partners' networks and that the empowerment requirements of government departments, parastatals, and some big companies in SA were now a non-negotiable feature of procurement documentation.

A construction industry empowerment charter was also believed to be in the pipeline.

Mashaba said Leswikeng's aim was not to become "passive investors, but participants in the growth, development and transformation of our partners".

He said they were committed to making the new business entity a "giant to be reckoned with in the construction industry".

Neither Hendry or Mashaba would provide the financial details of the transaction.



Last modified on Friday, 25 October 2013 14:03

Most Popular

Residential sectional title sales again on the rise

May 27, 2021
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Insurance policy renewals – the devil is in the details

May 27, 2021
Although your insurance policy should be reviewed annually, by paying your insurance…

JSE-listed Brikor increases profits markedly during Covid-19

May 31, 2021
Despite Covid-19, the lockdown and unusually high levels of rainfall in the last quarter…

Delta to apply for lifting of trading suspension on publication of half-year results ended 31 August 2020

Jun 01, 2021
Delta Property Fund, a specialist black-managed and substantially black-owned REIT with a…

Awards programme set to celebrate women in the construction industry: Entries open 7 June

May 28, 2021
In a traditionally male-centric industry such as the construction industry, it is…

Please publish modules in offcanvas position.