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IDC buys 20% more of local Siemens
TELECOMS
THE state-owned Industrial Development Corporation has bought an additional 20% of the local subsidiary of German technology giant Siemens AG. The IDC board this week gave the go-ahead for the acquisition, which follows a month after Sanlam sold its 32% holding in Siemens to the German parent. The IDC, which already controls 16% of Siemens, has a pre-emptive right to the Sanlam shares. The deal between the IDC and Siemens paves the way for a possible JSE listing by Siemens, one of the largest multinationals operating in South Africa with a staff of 4 000 and sales of about R3.5-billion expected this year. The IDC's general manager, finance, Gert Gouws, and Siemens chief executive Klaus Döring on Friday confirmed the deal but added that a number of aspects still had to be negotiated. "We are seeking an exit mechanism which will enable us to divest from Siemens in three to five years' time. Economic empowerment in the telecommunications field is important to us and would be high on the agenda during any divestment discussion," says Gouws. One of the most feasible options in achieving a smooth ownership transition would be a listing. Döring says a listing could be a reasonable option in years to come but that other possibilities are also being considered to provide the IDC with an exit mechanism. Chief executive Khaya Ngqula said earlier this week that Siemens was expected to benefit from Telkom's envisaged R53-billion telephone rollout programme over the next five years. "It would be commercially foolish not to raise our stake at this point in time," he said, adding that the Siemens' holding would enable the group to implement "real and not just token empowerment" in telecoms. The IDC is a welcome partner for Siemens - it and other future black stakeholders will have better ties with contract-awarding public corporations such as Telkom. Siemens was one of the five telecoms equipment manufacturers shortlisted under Telkom's project to develop 1-million new telephone lines. The project was shelved pending Telkom's partial privatisation, but Siemens is still a front-runner to win a large share of the R53-billion expansion plan.
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