Bulelani+Ngcuka+goes+it+alone,+Roy+Cokayne,+Business+Report

Business Report, Johannesburg, June 8, 2006
=Amabubesi's Ngcuka goes on his own=




 * By Roy Cokayne**

Pretoria - Bulelani Ngcuka has resigned as the chairman of empowerment group Amabubesi Investments, which in December acquired a 26 percent stake in listed construction company Basil Read. Ngcuka's resignation enables him to concentrate on his other business interests.

His resignation appears to be related to attempts to increase the black-owned shareholding in Basil Read back to 51 percent, with Ngcuka personally taking a stake in the company.

This follows Mzi Khumalo's Metallon Ventures, which Basil Read regarded as one of its key black economic empowerment partners, selling most of its 25.6 percent shareholding in Basil Read on the open market earlier this year and making a profit of about R70 million in eight months.

This reduced Basil Read's black-owned shareholding from 51 percent to 36 percent.

Sipho Ngwema, a spokesperson for Ngcuka, confirmed yesterday that Ngcuka, who is also the chairman of Basil Read, had resigned as the chairman of Amabubesi, but remained a shareholder in the company.

Marius Heyns, Basil Read's chief executive, confirmed that Ngcuka would remain the chairman of Basil Read and would continue to represent Amabubesi on Basil Read's board.

Ngwema said that Ngcuka needed more time to concentrate on building and adding value to other companies of which he was a board member and to focus on other strategic investments.

Ngcuka played a leading role in SAA chief executive Khaya Ngqula acquiring a 5 percent stake in Basil Read in March, following Metallon dumping most of its shares on the open market.

Heyns reiterated yesterday that Bouygues Travaux Publics had told Basil Read that there was a lock-in clause in the sale contracts, but that Basil Read was not privy to these agreements. Bouygues Travaux Publics still has an 18.6 percent shareholding in Basil Read and sold the shareholding to Amabubesi and Metallon in April last year.

"This is behind us now and there is no use crying about it. We're busy looking at our own situation with Ngcuka on how we can rectify [it].

"We're looking hard at clawing back our black-owned shareholding to 51 percent again," Heyns said. Basil Read was looking to work with Ngcuka personally to re-establish the black-owned shareholding.

Heyns said the company was not looking at any other black-owned entities because the same thing that had happened with Metallon could happen with another partner.

"We're pleased to work with him. It's beneficial for the company that he personally holds ... shares [in Amabubesi]. Ngcuka is committed to the company and is in for the long haul. He spends a few days a week with us," Heyns said.

Asked if Ngcuka was considering acquiring a direct personal stake in Basil Read, Ngwema said: "He is a businessman and everything is possible. He is looking at strategic investments."

Heyns said Basil Read would start negotiations with Bouygues soon to get a portion of its shareholding in Basil Read to facilitate an increase in the company's black-owned shareholding.


 * From: http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=3281835**

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