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August 7, 2008
The IDC backs empowerment and consolidation in SA timber industry
The Industrial Development Corporation (IDC) has approved the funding of a black empowerment transaction in the SA timber industry. Through this transaction, Savannah Capital Holdings is taking a majority stake in the independent timber distribution company, Lumber Marketing.Savannah Capital, headed by Chairman Henri Thompson, is a diversified investment company investing in businesses with significant growth potential. The company is focused on achieving empowerment and economic development through profitable and sustainable enterprises in southern Africa.
The IDC's Rentia van Tonder, Head of Wood, Paper and other Industries SBU said; "We believe that by funding this deal, the IDC is fulfilling one of its key objectives of enterprise development. This is owing to new opportunities that this deal will present not only to increase participation of new players in the timber industry but also assist smaller players to gain easier access to raw material."
The deal consolidates Savannah's interest in the timber industry, under the name Nkuni Holdings Limited, which already has a position through its association with Baltraco, a timber exporting company. By working closely together the two companies can provide a full array of services to both the local and international lumber markets. Baltraco co-owner, Simon Baillieu added; "We see this as a fantastic opportunity and look forward to working with a new partner. The deal establishes a definite synergy between both our businesses. This is an excellent growth prospect that we can certainly build on."
Lumber Marketing specialises in trading and servicing soft and hardwood markets in southern Africa. The Lumber Marketing directors will continue to remain an integral part of the Savannah management team. Baltraco and Lumber Marketing buy from and export to nine African countries (Angola, Kenya, Tanzania, Zimbabwe, Mozambique, Botswana, Namibia, Zambia, Malawi) and to Mauritius, Reunion, Seychelles, Comores and the United States.
For further information contact:
Savannah Capital
Henri Thompson 076 495 0080
Lumber Marketing
Jarl Christerson 011 886 6910
Baltraco
Simon Baillieu 011 787 2481 / 082 558 9616
College Hill
Sugitha Naidoo 011 447 3030 / 083 548 4692
Posted by StaffWriter at August 7, 2008 9:26 AM