05.11.2018

Manitou sells stake in South African subsidiary

Manitou has sold a 26 percent stake in its wholly owned subsidiary Manitou Southern Africa to the South African charity Columba Leadership Trust.

Manitou Southern Africa operates from locations in Johannesburg and Cape Town, with annual revenues of ZAR439 million ($31 million). Columba Leadership Trust was established around nine years ago to work with high schools in disadvantaged areas to support a strong educational culture to help pupils to achieve more in their future careers.

Manitou says that the transaction will strengthen its commitment to South Africa by meeting the highest standards of the Broad Based Black Economic Empowerment movement (B-BBEE).

B-BBEE is a South African government policy to advance economic transformation and enhance the economic participation of African, Coloured and Indian citizens) in the South African economy. Its purpose is to bridge the gap between theoretical and substantive equality. The programme is structured around 15 points covering the diversity of employees, vocational training and the selection of partners who are committed to the B-BBEE movement etc.
The transaction is expected to give Manitou Southern Africa the highest level of B-BBEE certification for a company not owned exclusively by black shareholders, helping the company meet the highest obligations of the mining and the public sector markets

Steve Ryder, vice president Africa and Middle East and managing director of Manitou Southern Africa said: "We are delighted with this transaction which reinforces Manitou's contribution to South Africa. Having been present in the country for more than 25 years, we are entering a new era that further entrenches our presence in a country where we want to continue to invest for the long term."

Manitou chief executive Michel Denis added: "By partnering with the Columba Leadership Trust, whose values and projects are designed to support adolescents in difficult situations, we are strengthening our actions in education, one of the key objectives of our social commitment."

Tracy Hackland, chief executive of Columba Leadership Trust said: "We are delighted to have acquired a shareholding in a company with the track record and reputation for excellence of Manitou Southern Africa. This investment provides Columba with a sustainable source of revenue to support its programmes in underprivileged schools, while Manitou South Africa benefits from Columba Leadership's status as a level 1 B-BBEE contributor."