Diversified and niche telecommunications, retail, distribution and technology services company DN Invest (DNI) has concluded an empowerment transaction with broad-based black economic empowerment investment holding company Mineworkers Investment Company (MIC).
MIC Investment Holdings acquired 25.1% of DNI’s shares, valued at R760-million, after the sale and buy back of Net1’s remaining 27.5% interest in DNI.
The transaction was concluded on April 1.
“We ran a process to raise equity for the group and in that regard, tapped into our existing shareholder network,” said DNI CEO Andrew Dunn, who added that MIC was deemed an ideal partner for its business owing to their excellent track record as value-adding shareholders.
In addition to the experience MIC brings as active shareholders, they also provide broad-based black ownership credentials and support.
“We therefore could not be more excited to have successfully closed the sale of the available stake to MIC. This is hugely positive for DNI going forward given our growth objectives and commitment to transformation within South Africa,” he continued.
DNI offers MIC both growth and dividend flow – key to sustaining MIC’s dividends to its shareholder trust that fund a range of educational and developmental programmes, said MIC CEO Mary Bomela, noting that this deal was one of MIC’s largest investments to date.
“Even prior to the blow that Covid-19 has dealt to the economy, trading conditions were difficult for several years in South Africa and finding assets that have continued to grow and generate dividends in this environment is tough.”
DNI has performed robustly in the challenging economic climate and is well-positioned for growth through and beyond the Covid-19 pandemic.
“DNI is serious about improving its BEE level and standing and has embarked on a broader transformation journey in this respect. MIC will be an important partner in guiding us, given its long history and experience in the BEE investing space,” Dunn said.