The Swiss-based company, whose largest client in South Africa is Eskom, develops and manufactures contact elements and systems for power supply networks and is in negotiations to sell 100 per cent of its share interest in Pfisterer Pty Ltd, its Pietermaritzburg-based operation.
“It is important to agree a transaction between all of the stakeholders that underpinned the long term sustainability and current employment of some 500 employees at the Pietermaritzburg factory,” said Pfisterer Sefag AG chairman of the board, Michael Keinert.
“We have been expanding product lines and quantities and moreover we envisage a strong relationship between the group and South Africa after the sale.”
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Pfisterer also explained that the power utility’s Transformation and Empowerment Agenda demands 51 per cent black and 30 per cent black female ownership of the Pietermaritzburg-based business in order for Eskom to continue to procure from the company.
As a result of this and in order to ensure that the potential buyer is compliant with this requirement, the lengthily consultative sale process will see all potential buyers vetted by Eskom.
Orene Maphosa Mnguni, current BEE partner of Pfisterer in South Africa, said, “After nine years involvement as a BEE partner to Pfisterer SA, I am excited to be at a point where this profitable business becomes South African-owned.”
“The business has built a very respectable track record, delivering highly technical and quality electrical equipment to its key customers. This potential deal will enable Eskom to continue to procure our electrical products and allows us to focus more heavily on growing Southern African markets.”
The group, which indicated that the sale consideration and negotiations are still subject to confidentiality, has operations in China, France, Germany, Russia, Singapore, the United Arab Emirates, the United States and the United Kingdom, to name a few.