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The first deal involved the introduction of the CIDA Empowerment Fund, a broad based empowerment entity, as a 10% shareholder in the credit bureau, TransUnion ITC.
CIDA is effectively a black-owned and controlled investment trust, established with the sole objective of building an endowment fund to finance the delivery of relevant education to the previously disadvantaged through the acclaimed tertiary education innovator CIDA City Campus.
The second BEE deal involves the introduction of Safika Investments, the private equity investment arm of Safika Holdings, as a 25% strategic shareholder in TransUnion's Receivables Management business.
According to TransUnion CEO, Andrew Knight, both deals enable TransUnion to become a more integrated organisation, with sustainable and authentic BEE development and business expansion being the key motivators.
TransUnion was one of the first multi national companies to re-invest in South Africa in 1993.
"We wish to develop this process further by investing in sustainable education... to create a new generation of leaders for TransUnion ITC and South Africa at large, while also transforming our organisation along broader based principles of economic empowerment," Knight said.
He said TransUnion's empowerment strategy is designed to fuel business growth, intensify skills transfer, and encourage cultural sharing - effectively leveling the competitive playing field for the company both locally and into the rest of Africa.
TransUnion will internally finance the sale of a 10% shareholding with TransUnion ITC to CIDA.
The dividends flowing from this investment will be used to fund the tertiary education of financially disadvantaged students through CIDA City Campus.
Every CIDA student is on a scholarship, effectively paying 5% of what they would pay to do an equivalent business programme at another tertiary institution in South Africa.
Taddy Blecher, CEO of the non profit institution CIDA City Campus said: "We have calculated that each CIDA graduate will conservatively earn an additional R9m over the span of their working life.
"This means that through this deal alone, the CIDA TransUnion ITC partnership is likely to inject approximately R3.5bn into the economy and into the hands of the more disadvantaged communities over the next 40 years".
The 25% BEE deal with Safika Investments will facilitate various combined business development initiatives in a range of industry sectors.
This will include building strong business synergies between Safika Holdings' consumer benefits recovery business and TransUnion's receivables management division.
Safika Holdings CEO Vuli Cuba said that the deal, subject to regulatory approval, is a strong mix of both broad-based empowerment and complementary business strategy, placing both TransUnion and Safika into new markets while consolidating established ones in the receivables management sector.
