CSC Commits to South Africa Through Landmark 30 Percent Equity SaleBy Csc, PRNE
Monday, November 22, 2010
Sale Endorses Commitment to Region and Anticipation to Receive Required BEE Accreditation
CENTURY CITY, South Africa, November 23, 2010 - Global IT Services company CSC (NYSE: CSC) today announced the completion
of a landmark agreement, subject to the usual regulatory and other conditions
for transactions of this nature, selling a 30 percent equity stake in its
South African business to Amabubesi Capital, an investment group in South
Africa. The sale endorses CSC's commitment to growing its business in the
region with the company expected to receive the required Black Economic
Empowerment (BEE) Accreditation once the process is completed.
BEE is a strategic initiative implemented by the South African government
to promote economic transformation in the country by ensuring that previously
disadvantaged individuals have the opportunity to participate in South
African business and the economy.
Under the terms of the agreement, Peter Moyo, director and co-founder of
Amabubesi, will become the Chairman of CSC's South African Subsidiary's
Board. His team will also join this Board and will assist CSC in the
implementation of their growth strategy and business development activities.
Peter Drube, managing director of CSC's South African business commented:
"This agreement is fundamental for CSC to realize its ambition to grow our
business in the South Africa region. Achieving the BEE accreditation will
give us the opportunity to deliver and implement innovative technologies and
services to organizations across the region as the country's economy
continues to grow."
Peter Moyo, director and co-founder of Amabubesi said: "We are delighted
to be working with CSC and look forward to achieving our shared growth
aspirations for our businesses. Through this agreement CSC has demonstrated
its commitment to black economic empowerment and supporting South African
CSC is a global leader in providing technology-enabled solutions and
services through three primary lines of business. These include Business
Solutions and Services, the Managed Services Sector and the North American
Public Sector. CSC's advanced capabilities include system design and
integration, information technology and business process outsourcing,
applications software development, Web and application hosting, mission
support and management consulting. The company has been recognized as a
leader in the industry, including being named by FORTUNE Magazine as one of
the World's Most Admired Companies for Information Technology Services
(2010). Headquartered in Falls Church, Va., CSC has approximately 94,000
employees and reported revenue of $16.1 billion for the 12 months ended
October 1, 2010. For more information, visit the company's website at
Amabubesi Group is an investment holding group which was founded in 2002.
Whilst founded in South Africa, it is now not only a player in the domestic
market but also in the African continent and beyond.
The foundations of the Group lie in its focus on Black Economic
Empowerment opportunities, and it is at the forefront of creating a
sustainable business model for South Africa. The Group encourages active
participation in investments to manage risk and enhance value, adherence to
sound governance, co-operation with co-investors and management to derive
innovative solutions and maximise value. It seeks to create and enhance an
All statements in this press release and in all future press releases
that do not directly and exclusively relate to historical facts constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements represent the Company's
intentions, plans, expectations and beliefs, and are subject to risks,
uncertainties and other factors, many of which are outside the Company's
control. These factors could cause actual results to differ materially from
such forward-looking statements. For a written description of these factors,
see the section titled "Risk Factors" in CSC's Form 10-K for the fiscal year
ended April 2, 2010 and any updating information in subsequent SEC filings.
The Company disclaims any intention or obligation to update these
forward-looking statements whether as a result of subsequent event or
otherwise, except as required by law.
Chris Grandis, +1-703-641-2316, cgrandis at csc.com; Peter Drube (South Africa), 021-529-6500, pdrube at csc.com; or Bryan Brady, +1-703-641-3000, investorrelations at csc.com, all of CSC NOTE TO EDITORS: For more information, please contact Peter Drube, Managing Director of CSC in South Africa on: 021-529-6500.
Tags: Century City, CSC, November 23, South Africa