Atul Gupta

The shares are being sold for R173m. The agreement offers both Mvelaphanda Holdings, headed by executive chairperson Tokyo Sexwale, and the Afripalm Consortium, headed by Lazarus Zim, a 12,1% stake in the company.
 
A further 2,8% of the shares will be subscribed to the Sahara Employees Trust Fund administered by four trustees, one of whom is nominated by the Sahara board of directors and the rest are employees.
 
The present valuation of the company is R960m. Following Saharas discount to its BEE partners, of 33%, the companys valuation stood at R640m.
 
The deal incorporates subsidiaries of Sahara Holdings, including Sahara Computers, Sahara Systems, Sahara Consumables, Sahara Distribution and Annex Distribution.
 
The Sahara board of directors will make way for new appointments, representing each partner in the deal. Parties have also agreed to the appointment of two additional independent directors, representing two Sahara subsidiaries, to the board.
 
Atul Gupta, MD at Sahara Holdings, believes the partnership is based on the principles of true broad-based economic empowerment.
 
Our objective from the outset was to ensure a broad-based partnership that would result in the transfer of benefit to all stakeholders. Aside from the fact that we welcome new appointments to our board of directors, we have also established the Sahara Employee Trust Fund through which we will continue to support, develop and invest, Gupta explains.

Mvelaphanda Holdings and Afripalm Consortium are both fast moving and established leaders in their respective markets and are also broad-based. The intention of the government of SA, in terms of empowerment, is to provide the fruits of the development of the economy to the masses, hence the need for empowerment deals to be broad-based. Mr. Sexwale and Mr. Zim are seasoned businessmen with experience in working with multinationals, adds Gupta.
 
This development in our company takes our current level of BEE accreditation a step further, in line with the ICT Charter, a recognised industry compliance guide, as well as government empowerment policy. It is also an investment in the leading role that SAs ICT sector plays on the continent, he concludes.