4th Jun 2021 17:16
(Alliance News) - African Equity Empowerment Investments Ltd on Friday noted that UK telecommunications firm BT Group PLC has sent a letter indicating that it will exercise a call option to repurchase a 30% stake in BT Communications Services South Africa Pty Ltd.
In 2008, the Cape Town-based private equity firm acquired a 30% interest in BT Communication Services South Africa for an undisclosed sum.
As part of the shareholder agreement signed in 2008, BT was given a call option allowing the group to repurchase African Equity's interest in BT Communications Services South Africa, in the event of an act which is not remedied within 60 days.
On Wednesday, BT announced that it would end its relationship with Iqbal Surve's Sekunjalo Group.
A BT spokesperson said: "We have initiated the termination process with the Sekunjalo Group in line with the shareholder agreement in place. We can confirm the 30% stake in BT South Africa was held by AEEI holding company through its subsidiary, KiloMIX Investments, and the transfer of BT shares to AYO Technology Solutions never took place.
"BT has made a decision to terminate its relationship with the Sekunjalo Group in South Africa. Further, BT has also corrected the misrepresentation of facts to the Standing Committee on Finance made by representatives of the Sekunjalo Group and initiated the process of terminating its relationship with the Sekunjalo Group," the spokesperson added.
Shares in African Equity Empowerment closed 6.9% lower at ZAR1.36 on Friday in Johannesburg.
By Dayo Laniyan; [email protected]
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