6 August 2008 – Agreement has been reached to restructure the shareholding of Alstom South Africa. A consortium consisting of Actis, Old Mutual Private Equity, management and existing Black Empowerment shareholders will purchase the shares of the company. Actis will hold 35% of Alstom South Africa’s equity, together with Black Empowerment investors (28%)*, Old Mutual Private Equity (20%), and Alstom South Africa’s management (17%).
Alstom South Africa provides products and services in power generation, transmission and distribution, transport, and industrial electrical processes. The Group employs in excess of 6,000 people and has an annual order intake of R5bn. It has 27 operating units, 22 production facilities and 25 distribution centres throughout South Africa.
The management of the Alstom South Africa Group and its operating divisions remain unchanged, with the exception of the Repair Services business, which will remain with the current shareholders. The co-operation, distribution, commercial and technology agreements with Alstom, Areva T&D and all other principals represented by the Group will remain in place.
The Group has also granted Alstom an option to buy its Power Service subsidiary (which provides maintenance, spares and after sales services for turbines and generators). Alstom will also take direct responsibility for the new utility boiler market, and will co-operate with Alstom South Africa as a preferred partner for environmental and retrofit projects. John Thompson, which remains part of Alstom South Africa, will remain responsible for industrial boilers and utility boiler service and maintenance, with Alstom’s technical and engineering support.
Under the new shareholding structure the Group’s current rating in terms of the Broad Based Black Economic Empowerment Act of 2003 and the Department of Trade and Industry’s codes of Good Practice will remain unchanged at a Level 5, local value adding supplier.
* Black Empowerment investors include Tiso (9.5%), Kagiso (9.5%), black individuals, management and employees (9%).
Press release provided by Alstom SA (Pty) Ltd