Mvelapanda invests in ITWeb
Ummango Investment Holdings, a women's broad-based BEE consortium, financed by Mvelapanda Holdings ("Mvela Holdings"), has acquired a 25.1% stake of ITWeb, a technology media company. ITWeb operates a technology news Web site, publishes two magazines, a series of annual handbooks and owns related businesses within its chosen space.
Tham-Tham Ndziba, CEO of Ummango Investment Holdings, says ITWeb is an obvious acquisition target as it is one of the most successful online media companies in the country. "ITWeb plays a prominent role not only in the media space but within the ICT sector as well. This gives us an opportunity to complement our existing investments in the media sector and at the same time gain access to the ICT sector."
"This acquisition is in line with our strategy to continue growing our investment portfolio by making key acquisitions into niche players that dominate their sectors, including the media industry," says Mark Willcox, CEO of Mvela Holdings. "ITWeb leads its market and has a long history of consistently growing revenues and profits. We are pleased to assist with growth and market positioning going forward."
The shares are purchased from existing shareholders, who agreed to lend a portion of the money back to the company in order to boost its cash position and prepare it for future growth.
"We are fortunate to get such a well established and well resourced BEE group as our empowerment partner," says Jovan Regasek, founder and CEO of ITWeb Limited. "We are acquiring significant empowerment credentials and a long-term, supportive BEE shareholder, committed to growing the business."
Even without its BEE dimension, as a pure business transaction, the deal makes perfect sense for the company, continues Regasek. "We share the same outlook for the future of ITWeb and the future of the media sector in SA, and this is the best part of the partnership."
"Our empowerment partners are on a mission of redefining the local media space. We feel that we should play a meaningful role in the process and we are happy to be part of the action," explains Regasek.
Tham-Tham Ndziba will join ITWeb's board of directors in the capacity of a non-executive director.