Issued by: Ministry for Public Enterprises
The Ministry for Public Enterprises has announced the Viamax (Pty) Limited, a wholly-owned subsidiary of Transnet, will sell a 30 per cent stake of Viamax Fleet Solutions (PTY) Limited (VFS), one of its subsidiary companies for R12 million. VFS is a fleet management company, and will initially be tasked with the management of the fleet of some of the business units of Transnet.
The stake has been sold to a newly-formed consortium called Saram consisting of Super Group Limited, Rent-a-Bakkie Holdings (Pty) Limited, and Amalgamated Union Transport and Automotive (Pty) Limited (AUTA).
The Minister for Public Enterprises, Minister Stella Sigcau, expressed satisfaction with the deal. "VFS is a relatively small part of Transnet business but, large or small, the principle must be right. I had to be sure that the deal made economic sense and I am satisfied that this deal is financially viable and in the best interests of the South African tax payer."
"I am also pleased to note that Transnet has adhered to government policy in terms of black economic empowerment."
Mr Mafika Mkwanazi, Transnet's Deputy Managing Director, said "the competing bidders were intensively evaluated and we are satisfied that the winning consortium has the expertise to run and grow the busienss".
"Importantly, its has undertaken to expand the business by actively seeking out additional clients from the private sector rather than concentrating solely on the 5000 vehicles in the Transnet fleet", said Mr Mkwanazi.
Mr Mkwanazi said Saram has a strong component of black economic empowerment which is in line with government policy on privatisation. The black empowerment component comes through:
We are happy that this deal is fair and in line with our mandate from the government", said Mr Mkwanazi.
Mr Mkwanazi said that a portion of the remaining 70% stake in VFS will also be sold, but Transnet will retain control in the short to medium term. Each employee will be given an option to purchase shares in VFS and a percentage, still to be determined, will go to the National Empowerment Fund.
He also stressed that the Viamax deal if the first in the restructuring of Transnet. Over the course of the next two years Transnet will create ventures and will privatise support businesses.
Elias Mphande, Managing director of AUTA, one of the shareholders in the consortium and its spokesperson said: "We are very excited to be seleted. We view it as an endorsement of the consortium's expertise in fleet management".
"We intend to actively expand the business by seeking other similar contracts, all of which will be grown under the VFS umbrella."
The deal is also personally satisfying to me in that it shows that black economic empowerment in this country is becoming a reality. In the broader South African context, this is essential if we are to create a stable economic climate in which South African businesses can flourish."
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