Broad Based Black Economic Empowerment

History was recently made with the Kemklean (Pty) Ltd announcement that the company was the first in its market sector to conclude a Black Economic Empowerment (BEE) deal in which 25,1% of the company was acquired by Dali Tambo’s Koketso Growth (Pty) Ltd.

The deal, funded and facilitated by Investec for an undisclosed amount will position Kemklean to increase its market share both locally and internationally. Koketso Growth and Kemklean were introduced by investment brokers, who later facilitated the process with Investec to put forward a portion of the funding on an unsecured basis. The balance of the funding was acquired through a normal BEE secured basis. Kemklean is a specialist manufacturer in the formulated chemicals market. The company has a substantial footprint in the retail and food processing industry, with approximately 17% of national market share, is ISO 9001 listed and delivers products to SABS permit and product requirements.

MD Dale Smith commented, “We are very excited about the deal with Koketso Growth. I am filled with anticipation regarding the opportunities for growth for both parties. Kemklean looks forward to a long and fruitful partnership.” According to Smith, the deal took six months to conclude, this after endless and fruitless meetings with potential partners. “Koketso is proud to join forces with a company with the reputation of Kemklean and looks forward to working with customers, management and staff to increase its territory for the benefit and health of society as a whole. Koketso is also pleased to further consolidate its strategic investment in this sector. We believe that all shareholders will benefit from our relationship,” added Dali Tambo.

Article & Photo courtesy of:
African Cleaning Review
July/August 2005