(Adds Coca Cola bottling in third paragraph.)
By Mike Cohen and Franz Wild
Jan. 29 (Bloomberg) –- Cyril Ramaphosa, who led
negotiations to end apartheid, is quitting the 8.8 billion rand
($803 million) company he founded as he focuses on politics, the
man who will replace him as chairman of Shanduka Group said.
The 61-year-old former union leader, who in December 2012
accepted the post of deputy leader of the ruling African
National Congress, will also probably need to sell his 29.6
percent stake in the Johannesburg-based company, James Motlatsi,
who will become chairman of the group, said. Shanduka holds
stakes in mines owned by Lonmin Plc, mines coal in a venture
with Glencore Xstrata Plc, controls the McDonald’s Corp.
franchise in South Africa and bottles Coca Cola.
“Cyril has left already and he will no longer play a
leading role within this company,” Motlatsi said in a Jan. 27
interview at Shanduka’s Johannesburg headquarters. “I believe
Cyril will ultimately have to divest. If his share is bought,
that should be by a black consortium, because we want to remain
a black-controlled company.”
Ramaphosa resuscitated his political career when he secured
the No. 2 post in the ANC, and is frontrunner to become the
nation’s deputy president after elections that are due to take
place by July. Last year he resigned from the boards of
companies including MTN Group, Lonmin and Standard Bank Group
after initiating a review of his business interests to address
possible conflicts of interest.
He quit politics for business in 1996 after earlier losing
the contest to become South Africa’s first post-apartheid deputy
president under Nelson Mandela to Thabo Mbeki, who became
president in 1999. Ramaphosa led the ANC delegation that
negotiated an end to apartheid with the then ruling National
Party before the 1994 all-race elections.
Ramaphosa yesterday was named in the second position on the
ANC’s list of parliamentary candidates. Aside from Mandela,
South Africa’s three post-apartheid presidents have initially
served as deputy national leader.
“Cyril is deciding to step back into politics with both
feet and government,” said Sinethemba Zonke, a political
analyst at africapractice. “We may see him taking a lot more
control over policies in the country.”
Ramaphosa founded Shanduka in 2001, building it into an
enterprise with stakes in 29 businesses in five countries
currently worth 8.8 billion rand on a net asset value basis,
according to Phuti Mahanyele, Shanduka’s chief executive
officer. That would value the stake owned by Ramaphosa’s
Tshivhase Trust at about 2.6 billion rand.
Motlatsi, who unlike Ramaphosa will serve in a non-
executive role, helped him found the National Union of
Mineworkers in 1982. The union, which led the country’s biggest
ever mine strike in 1987, was South Africa’s largest labor group
until last year. Motlatsi has served on the board of Shanduka
since it was founded.
Mahanyele said in a separate interview on the same day that
an announcement about Ramaphosa’s plans will be made at a later
stage. She didn’t comment further.
“Mr. Ramaphosa initiated a review of his business
interests following his election as ANC deputy president and has
stepped down from a number of positions,” Steyn Speed, a
spokesman for Shanduka, said by e-mail. “This process, which
involves consultation with affected companies and other
stakeholders is ongoing and he will make further announcements
In 2011, China Investment Corp., the nation’s sovereign
wealth fund, agreed to buy 25 percent of Shanduka for 2 billion
While Shanduka initially targeted so-called black economic
empowerment deals, which companies entered into to meet their
obligations to the state to give a greater stake in the economy
to the nation’s black majority, that’s no longer the case,
Shanduka is seeking new acquisitions and disposing of some
of its current investments.
“Resources is a sector where we have acquired a number of
assets in past years,” Mahanyele said. “We are not necessarily
looking at new investments in resources per se. The consumer
goods sectors are the ones we’re really keen on looking at.”
Shanduka may also consider an initial public offering in
some of its units within the next three years.
“The focus of the management team right now is to make
sure we have got good sizable assets that we could list in the
next few years,” Mahanyele said. “It’s something that remains
an objective but we will do it at the right time. We are not
For Related News and Information:
Ramaphosa Quits Boards to Prevent Conflict With Politics
Ramaphosa Wins S. Africa ANC Deputy Post in Boost to Zuma’s Rule
S. Africa’s Ramaphosa, Once a Mine-Union Leader, Now an Owner
Top South African News: TOP ZA
South African Political News: TNI SAFRI POL
--With assistance from Amogelang Mbatha in Johannesburg.
Editors: Antony Sguazzin, Karl Maier
To contact the reporters on this story:
Mike Cohen in Johannesburg at +27-21-818-0089 or
Franz Wild in Johannesburg at +27-11-286-1929 or
To contact the editors responsible for this story:
Antony Sguazzin at +27-11-286-1934 or
Nasreen Seria at +27-11-286-1927 or
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