22nd May 2007 07:02
Innovation Group PLC22 May 2007 22 May 2007 The Innovation Group plc Black Economic Empowerment agreement Divestment of a 25% share of Innovation Group (Proprietary) Ltd to InthutukoInvestments (Proprietary) Ltd and qualification in South Africa as a BlackEconomic Empowerment ("BEE") company The Innovation Group plc ("the Group"), which provides outsourcing services andsoftware solutions to the world's insurance providers, today announces that ithas agreed to divest a 25% shareholding in its South Africa distributionsubsidiary Innovation Group (Proprietary) Ltd ("Innovation SA") to InthutukoInvestments (Proprietary) Ltd ("Inthutuko") for ZAR132m (approximately £9.6m)before transaction costs. Inthutuko is 77.8% owned by the Innovation Group Employee Incentive Scheme inSouth Africa. Innovation SA's 800 staff, of all races, are equal beneficiariesin the share scheme. The remaining 22.2% is presently held by Jala Capital whichis owned by Investec Bank, Salala Lesela, Pumulani Ncube and Kumaran Padayachee.Inthutuko has financed the transaction through a ZAR 132m (approximately £9.6m)loan from Barclays Bank plc for which the Group has provided a guarantee. Innovation SA provides business process outsourcing to the South African market.Revenues and post tax profits in 2006 were ZAR 373m (£31.1m) and ZAR 57m(£4.8m). This divestment to Inthutuko will secure Black Economic Empowermentstatus for Innovation SA in South Africa. The Group will utilise the proceeds for general corporate purposes. Hassan Sadiq, Chief Executive Officer of The Innovation Group plc, said: "BEE is a major initiative within South Africa. By this divestment of a minorityshareholding of Innovation SA, principally to a staff owned trust, the Group hassuccessfully achieved BEE status. Furthermore we have honoured our commitmentson Employment Equity, Procurement and Skills Development, which are an integralpart of the BEE programme. Broad based employee ownership in South Africa is akey motivation for growth that will benefit the entire Group. Engaging with true BEE is an outstanding opportunity to build our presence inSouth Africa, especially in the government, state-owned enterprises andfinancial services sectors." Enquiries: The Innovation Group plcHassan Sadiq, Chief Executive Officer +44 (0) 1489 898300Paul Hemsley, Group Finance Director College Hill Associates Ltd Sara Musgrave +44 (0) 20 7457 2020Carl Franklin This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Team Internet