Ngcuka+heads+first+major+BEE+Property+Charter+deal,+B+Day

Business Day, Johannesburg, 04 May 2006
=Ngcuka heads first major BEE deal under new Property Charter=


 * I-Net Bridge**

ASSET Alliance today sold a 25% stake of their business to BEE groups Amabubesi Investments (20%) and Bamaka Investments (5%). The deal, valued at R100m, is the biggest in the sector to date and comes less than two months after the Property Charter came into effect.

Asset Alliance is the holding company of both Auction Alliance and Valuation Alliance. As part of the deal, both BEE shareholders will play an active strategic and management role in Asset Alliance.

Both groups will also have a combined voting right exceeding 25%.

Amabubesi is headed by Chairman Bulelani Ngcuka, and CEO and founder of Nkonki, Sizwe, Ntsaluba - Sango Ntsaluba.

Bamaka Investments is the BEE vehicle for Asset Alliance’s existing Black management and is headed by Asset Alliance Executive Director Balisa Mangxaba.

The new partnership will see Amabubesi appoint two non-executive Directors to Asset Alliance’s board, which effectively increases black board representation to 57%. Ntsaluba will be the group’s new Chairman.

Asset Alliance CEO, Rael Levitt says the deal is the first of its kind in the South African auction industry where both management and existing staff have taken a stake in the business. He says that both BEE investors will play a key role in taking the business forward.

Levitt says the auction industry and valuation industries are worth some R10bn per annum and expects substantial growth driven by the public sector.

"Whilst our group has strong organic and acquisitive growth over the last three years we anticipate huge opportunities relating to the privatisation of state assets and work relating to various Government departments.

"We have always believed that auctions are a first choice method of asset disposal in the public sector. "Auctions represent the best method for Government to sell off assets because it’s open and transparent," says Levitt.


 * From: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A195102**

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