TÜV SÜD South Africa Sells Shares to Kapela Holdings

MIDDLEBURG, South Africa, November 19, 2015 /PRNewswire/ --

- Black Economic Empowerment Act

Within the scope of a strategic transaction, TÜV SÜD South Africa will sell 26 per cent of its entire issued share capital to Kapela Holdings and other partners. The transaction takes place as part of the organisation's Black Economic Empowerment (BEE) Initiative. TÜV SÜD South Africa will use the opportunity to optimize the company's structures. 

"By undertaking this transaction, we are fulfilling our responsibility as a South African subsidiary of an international group of companies", says Leon Nel, CEO of TÜV SÜD South Africa. "In addition to implementing the Black Economic Empowerment Act, the transaction will also strengthen our company's position in the South African market and secures our business relations especially with state owned or parastatal companies." TÜV SÜD South Africa employs almost 460 staff generating around EUR 14 million in revenue. Key focus areas include inspection and test services for the energy industry, lift services, vehicle inspections and certification of the quality-management systems of companies.

TÜV SÜD South Africa's sale of 26 per cent of its issued share capital to Kapela Holdings has prompted the company to bundle all its fields of activities under the umbrella of a holding company and align them to the structure of the TÜV SÜD Group. "Our corporate structures in South Africa have developed historically", explains Dieter Schlunek, CFO of the Region Middle East / Africa of TÜV SÜD. "By streamlining and restructuring our company within the scope of the current BEE transaction we can further improve our services, which will benefit our clients."

The integration of Kapela Holdings into the Board of Management of TÜV SÜD South Africa will be a further step in this direction. "Kapela is a professional black empowerment group with substantial business experience and networks", says Leon Nel of TÜV SÜD. The Kapela consortium also includes a non-profit organization, Disability Empowerment Consortium which represents over two million people with disabilities and majority being black.

Israel Skosana, the Executive Chairman of Kapela says "We are excited to be an investor in TÜV SÜD South Africa, the Kapela team is looking forward in working with TÜV SÜD management growing the company and thus creating shareholder value."

The Black Economic Empowerment Act of 2003 was passed by the government of South Africa to create a mechanism for affirmative action and to redress the inequalities of the past. The BEE Act also allows for the development of Codes of Good Practice, which define certain requirements for companies.

TÜV SÜD is a premium quality, safety, and sustainability solutions provider that specialises in testing, inspection, auditing, certification, training, and knowledge services. Since 1866, the company has remained committed to its founding principle of protecting people, property and the environment from technology-related risks. Headquartered in Munich, Germany, TÜV SÜD is represented in more than 800 locations worldwide. TÜV SÜD operates globally with a team of more than 22,000 multi-disciplinary experts recognised as specialists in their respective fields. By combining impartial expertise with invaluable insights, the company adds tangible value to businesses, consumers and the environment. The aim of TÜV SÜD is to support customers with a comprehensive suite of services worldwide to increase efficiency, reduce costs and manage risk.

Media Relations:
Leon Nel
CEO of TÜV SÜD South Africa (Pty) Ltd
Tel.: +27-(13)-244-1330
Fax: +27-(13)-244-1342
Mobile: +27-(82)-576-5246
E-mail: Leon.Nel@tuv-sud.co.za
Internet: http://www.tuv-sud.co.za