Zico Capital buys 75% of Vuya!

Investments ZICO Capital, a Joburg-based black economic empowerment investment company, has bought a 75 percent stake in women empowerment company Vuya! Investments.

Vuya is a Western Capebased black women’s investment holding company, whose main business is a 25 percent stake in specialist chemical company Henkel South Africa. Henkel’s annual turnover is in excess of R720 million.

Henkel SA also has a strong presence in the automotive, retail and industrial sectors, being part of a German multinational based in Düsseldorf. But it has a South African board and management.

Yesterday, Vuya executive chairwoman Mercia Isaacs said it had acquired a R41m loan in 2005 to buy a 26 percent stake in Henkel SA.

Up to 90 percent of their annual return had gone to paying interest on the loan. Isaacs said it had sold 75 percent of the company to Zico as it would have "strangled" itself if it had not.

Zico has now taken over 75 percent of Vuya’s Henkel shareholding, leaving it with a 25 percent liability.

Vuya’s other business includes a 26 percent share in quality and assurance management company TÜV Rheinland Services, as well as shares in information technology support company Siyaya Phambili Technology Solutions.

Isaacs said the cash injection would allow it to concentrate on further investments, specifically ones which would benefit women.

Isaacs said yesterday the buyout would not have any significant impact on their day-today activities. Thankfully, she added, they would not move offices to Gauteng and none of the staff would be affected.

Zico Capital is chaired by Sandile Zungu.

Isaacs said Vuya chose Zico as it needed someone who would negotiate with integrity. Zico chief investment officer Tshego Sefolo said the partnership with Vuya gave the company a welcome presence in the Western Cape.

Zico sought to invest in a number of actively and strategically managed investments in the consumer, services and industrial sectors, Sefolo added.

The diversified holdings company is an active shareholder in cleaning company Fidelity Supercare, Fidelity Cash Management Services, financial services firm Taquanta Group, fleet management company Debis and AutoZone, which deals in car parts.

"Zico is fast building a reputation as a trusted business partner with solid operational and business development capabilities." Sefolo said.

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