New GX Capital buys stake in CIV
Business Day (South Africa) Via Thomson Dialog NewsEdge
03 April 2007
New GX Capital buys stake in CIV Financial Services Editor BLACK-controlled private equity fund New GX Capital has acquired a 38% stake in investment holding company Community Investment Ventures (CIV) in a deal worth R100m.
The acquisition was expected to bolster CIV's empowerment credentials and create one of the biggest telecommunications, power, energy and technology investment groups in SA, said CIV director Nicolaas Venter.
There are a lot of synergies between New GX Capital and CIV, which will make us a highly focused group with high growth investments, Venter said. The brains behind New GX Capital Eugene Mokeyane, former director-general in the public enterprises department, and Khudusela Pitje were highly regarded business people in the telecommunications and energy sectors. The company's investments had created white- and blue-collar jobs.
Venter said CIV was waiting for competition authorities to sanction its quest to acquire three high-profile companies in the telecoms and power sectors.
CIV was in talks with two other possible acquisition targets, Venter said, without disclosing the parties or the amount involved. CIV which was started by a group of entrepreneurs eight years ago has a portfolio of assets valued upwards of R300m.
Richard Came, a CIV director, said the boom in SA's economy presented growth opportunities in the telecommunications and energy sector, particularly on the supply side of infrastructure.
He said the IT sector was also poised to grow and CIV was well placed to take advantage of this growth.
Copyright 2007 Times Media Ltd.. Source: Financial Times Information Limited - Europe Intelligence Wire.