Johannesburg, South Africa — 20 December 2012 – South African business icon Cyril Ramaphosa says he is to review his interests in business “’ a development that may see the former unionist surrender his executive duties at Shanduka Group, the company he formed in 2001.
The announcement of the review comes a day after Ramaphosa was appointed deputy president of the African National Congress (ANC), Miningmx reports. “As a consequence of my election to the position of ANC deputy president at the ANC’s 53rd National Conference in Mangaung, I have initiated a review of my interests in business,” he said in a statement.
“This is necessary to address any potential conflicts of interest, and to ensure that I can adequately perform the responsibilities of this position,” he explained. “In consultation with the ANC national officials, I am undertaking a process of engagement with several stakeholders on the implications of my election to this post. This will include a review of existing positions, responsibilities and obligations. It is intended that this process result in an arrangement that removes the possibility of any conflict of interest,” he added.
Shanduka Group’s interests are diverse and include mining, such as a joint venture with international trading giant Glencore, in coal; financial services, industrial and property, as well as MacDonald’s and Coca-Cola Shanduka Beverages.
All in all, there are 20 separate investments, although lately the company’s CEO, Phuti Mahanyele, has hinted at a restructuring ahead of a listing on the JSE.
In the last year alone, the company has taken the scalpel to its portfolio in an effort to transform itself into an operating company with control over cash flow and strategic decision-making.
Firstly it has quit its 25% stake in the engineering and project management company DRA/Minopex. Gone too is its 11.8% stake in Assore, the iron ore and manganese investment company, for R2.7 billion.
Shanduka has also vended in its 30% stake in Kangra Coal to Shanduka Coal, which has helped finance taking control of that company from Glencore International. A feasibility review into acquiring control of Lonmin’s Limpopo Division is also due for completion.
But Shanduka Group was also acted upon when Chinese sovereign wealth fund, China Investment Corporation (CIC), bought a one-quarter stake in the company in December, 2011. The shares were purchased from Old Mutual and Investec. This, in its turn, could lead to further acquisitions for Shanduka Group, Mahanyele told Miningmx in an interview in August.
Mahanyele confirmed the bias was towards resources, although Shanduka Group does have exposure to the fast moving consumer goods (FMCG) market.
However, with a shareholder like CIC, support for new investments is bound to be predominantly in energy and mining. “Resources will continue to be a big part of our business, but given the volatility in the industry, we still need more critical mass,” said Mahanyele in the interview.
Source: Miningmx. For more information, click here.