21 June 2010

Namibia: Selco's Netelek Deal Will 'Ensure Future Growth'

Johannesburg — NAMIBIA-based power operator Southern Electricity Company (Selco) has acquired utility specialist Rural Maintenance and technology companies Netelek and Netelek Technology, it said on Friday.

Selco said the acquisitions would consolidate the business of Resource Management Integration Group, Selco's controlling shareholder, into a single listed entity.

It said the move would improve corporate governance, ensure future growth, increase the business's size and retain skilled employees.

"It is envisaged that each of the entities acquired will, in due course, enhance the group's revenue generating capacity, as a result, its profitability and investment return to shareholders," Selco said.

Rural Maintenance is a utility solutions provider, specialising in the electricity management, metering, billing and revenue fields. Netelek designs and supplies supervisory control and data acquisition, load control, monitoring and metering systems to medium-sized municipalities in SA. Netelek Technology is a technology supplier to Selco.

Selco has bought the entire issued share capital of Rural Maintenance and 49% of Netelek for R199,1m. Selco would also acquire the entire issued share capital of Netelek Technology for R4,5m.

The company said that the acquisition of Rural Maintenance and Netelek was subject to approval by Selco shareholders, Resource Management Integration Group shareholders, Resource Management Integration Group's distribution of its 81,73% indirect shareholding in Selco to its shareholders, and Standard Bank 's approval of the transfer of bank accounts from Rural Maintenance and Netelek to Selco.

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