Siemens announces black economic empowerment deal

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14 February 2001 News

Siemens Southern Africa, the local electrical and electronic engineering arm of Siemens AG of Germany, has announced affirmative moves on its programme for black economic empowerment.

A year ago, Siemens AG bought back the shares (36%) which were owned by the IDC in Siemens Limited, southern Africa. These were 'warehoused' for new local empowerment partners. With effect from 1 December 2000, Siemens AG sold 13% of the issued share capital to the wholly black-owned company Sekunjalo Investment Holdings. The deal is valued at R92m and includes a significant empowerment discount.

Dr Iqbal Survé, Chairman of Sekunjalo Investment Holdings, who facilitated the transaction, is upbeat about future prospects: "Siemens is the most diversified technology company with entrenched roots in southern Africa. This is very much a blue chip investment, especially as Siemens is a key player in reconstruction and development through technology in southern Africa". Dr Survé has been appointed to the Board of Siemens Limited.

Siemens Chief Executive, Dr Klaus Döring, is optimistic about this new venture: "We have been engaged in discussions with many companies and individuals to select a partner who can share in our commitment and philosophy - in Africa, for Africa. I am confident that our new partner can add much value to our future endeavours. As much as our business interests are extensively diversified over many different technologies, we strongly believe that we should share the prosperity of our company with different South African groups. We have identified interested parties for the sale of a further 13% of our equity. The remaining 10% of the shares brought back from the IDC will be warehoused to pursue strategic investment initiatives in southern Africa.

Dr Klaus Döring

In a second move towards a programme of transformation, Döring announced the appointment of Dr Benny Mokaba as Chairman to the Siemens Board. "This move represents an important milestone in our African history and further endorses our commitment to transformation," says Döring.

Siemens SA in Midrand

Dr Mokaba, Chief Executive of Steinmüller Africa, fully subscribes to the Siemens programme of empowerment. "For Siemens to remain a model company as a corporate citizen, change is a matter of course. Siemens' customers and the business environment guide, and determine the entrepreneurial spirit of the company. Organisations should continuously strive for perfection and review processes in order to engineer long term successes".

Siemens

(011) 652 2000

www.siemens.co.za

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Siemens announces black economic empowerment deal

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