Nokia Siemens Networks has announced the transfer of 26% ownership of its South African Holding Company, Nokia Siemens Networks RSA to BEE partners.
The new partnership will see Sekunjalo Telecoms Holdings and Africom Telecom Holdings each acquiring 13% of Nokia Siemens Networks Holdings RSA, a holding company that owns 60% of the Nokia Siemens Networks SA, the operating entity.
The deal puts Nokia Siemens Networks RSA (under global parent company Nokia Siemens Networks) firmly on the road to full BEE compliance. This enables Nokia Siemens Networks SA, the operating entity of Nokia Siemens Networks RSA, to be on the road to meet the Minimum Codes of Good Practice requirement and proves a genuine commitment by a multinational company to comply with BEE as an important national instrument of correcting the imbalances of the past.
The net impact is the BEE shareholding of 18.9% on Nokia Siemens Networks SA, also due to the 9.5% BEE shareholding in Reunert, a 40% shareholder of Nokia Siemens Networks SA. However, the agency rating interpretation of the deal which discounts shareholding by pension funds will measure the resulting impact of the Nokia Siemens Networks RSA BEE deal at 31.53%.
The market value cash consideration to be paid by Sekunjalo Holdings and Africom Holdings has been financed by the Rand Merchant Bank of South Africa.
Linda Khumalo, head of sub-region: southern Africa at Nokia Siemens Networks, says: “Nokia Siemens Networks South Africa sees this deal as Phase 1 of our BEE compliance process. Nokia Siemens Networks commenced operations globally in April of this year. We are thus proud to disclose that in the space of a few months we have secured a deal that lays the groundwork for Nokia Siemens Networks South Africa to align itself to all seven pillars of the BEE.
"We see our concrete BEE rating a level 6 contributor as a result of the deal; and, going forward, we will concentrate our energies on boosting this BEE position up to level 4 contributor, a drive that is necessary to project Nokia Siemens Networks South Africa as an example of the effectiveness of true BEE.”
Kenneth Setzin, board member and shareholder of Africom Holdings, adds: “With South Africa leading the telecommunications industry in Africa; and Africom Telecom Holdings; Sekunjalo Telecoms Holdings and Nokia Siemens Networks each being at the forefront of telecommunications development in this county, this BEE alliance makes sense.
"As partners we are also aligned to Nokia Siemens Networks’ vision of connecting 5-billion people via wire and wirelessly by 2015. We look forward to adding value to the Nokia Siemens Networks South Africa business and also assisting Nokia Siemens Networks in its global drive to transform developing economies via telecommunication.”
Igbal Surve, chairman of Sekunjalo Telecoms Holdings, comments: “Together with Africom Telecom Holdings, I believe, we will bring added value to the Nokia Siemens Networks South Africa business going forward and contribute to creating value for shareholders. With the ICT industry in South Africa now poised for more growth that will allow for much cheaper broadband and other connectivity for all South Africans to access; BEE deals such as this one simply add to priming the market for growth that will boost our economy further."