“We are fortunate to get such a well-established and well-resourced BEE group as our empowerment partner,” says Jovan Regasek, founder and CEO of ITWeb Limited. “We are acquiring significant empowerment credentials and a long-term, supportive BEE shareholder, committed to growing the business.”
Tham-Tham Ndziba, CEO of Ummango Investment Holdings, says ITWeb is an obvious acquisition target as it is one of the most successful online media companies in the country. “ITWeb plays a prominent role not only in the media space but within the ICT sector as well. This gives us an opportunity to complement our existing investments in the media sector and at the same time gain access to the ICT sector.”
Ndziba will join ITWeb's board of directors in the capacity of a non-executive director.
“This acquisition is in line with our strategy to continue growing our investment portfolio by making key acquisitions into niche players that dominate their sectors, including the media industry,” says Mark Willcox, CEO of Mvela Holdings. “ITWeb leads its market and has a long history of consistently growing revenues and profits. We are pleased to assist with growth and market positioning going forward.”
The shares are purchased from existing shareholders, who agreed to lend a portion of the money back to the company in order to boost its cash position and prepare it for future growth.
Even without its BEE dimension, as a pure business transaction, the deal makes perfect sense for the company, says Regasek. “We share the same outlook for the future of ITWeb and the future of the media sector in South Africa, and this is the best part of the partnership.”
“Our empowerment partners are on a mission of redefining the local media space. We feel that we should play a meaningful role in the process and we are happy to be part of the action,” explains Regasek.
Mvela Holdings last year helped finance the acquisition of AltX-listed business and financial media company Moneyweb Holdings by Isingqi Investment Holdings. Its majority-owned listed Mvelaphanda Group also last year acquired up to 30% of Avusa (formerly Johncom) through an agreement with Allan Gray, which made the wider Mvela group a common denominator between the two.
Ummango Investment Holdings is a company formed and 100% owned by black women whose interest is to invest in market leading companies in the media, property, information technology and mining industries.
