Simeka TWS Communications secures empowerment partner

The deal which is subject to Adcorp shareholder and necessary regulatory authority approval, involves the introduction of the empowerment consortium as 25% shareholders in the Group's communications division, to be known as Adcorp Communication Solutions (Pty) Ltd. The division includes market leader Simeka TWS Communications as well as Graphicor and PR Connections. Taking into account Adcorp's existing BEE shareholding, the deal effectively brings the BEE ownership level in Simeka TWS Communications to 34%.

The empowerment consortium is formed by Tshirundu Investment Holdings, a black-owned investment company, and Black Management Forum Investments Company (BMFI), the investment arm of the Black Management Forum.

Says Viccy Baker, Chairman of Simeka TWS and Adcorp board member, "The transaction has been made possible by way of an innovative structure enabling the empowerment partners to participate in the fruits of their endeavours right from inception. The agreement significantly enhances the empowerment profile of Simeka TWS and we believe that the impact on our business will be considerable."

In terms of the agreement, Thendo Ratshitanga, chairman of Tshirundu Investment Holdings, becomes the executive chairman of the new company, whilst George Negota, a director of Tshirundu, will represent the consortium on the Adcorp Holdings Board. Viccy Baker remains Chairman of Simeka TWS Communications.

Operating within the constraints of being wholly-owned by a JSE-listed company with large institutional shareholders Simeka TWS Communications has consistently demonstrated its commitment to black economic empowerment in areas other than ownership. Baker sees the empowerment deal as complementing existing policies and entrenching the company's long-term commitment to black economic empowerment.

Baker points to recruitment and disbursements as two key areas where Simeka TWS is already making a considerable contribution. "With a staff complement of 68 in three centres (Johannesburg, Cape Town and Durban) Simeka TWS has over the years consistently maintained significant BEE representation at all levels, including the board (50%), senior management (43%) and the organisation as a whole (57%)."

"With regard to disbursements, Simeka TWS introduced a BEE procurement policy some years back for services across the spectrum from photography and videography to printing, catering, audio-visual, travel, entertainment and event management. Through our intervention, many of our suppliers have recognised the importance of black economic empowerment and we now operate an extensive supplier database consisting of 50% or more black-owned companies. Through this process we have also sourced and empowered new small business operators and we have introduced special payment terms to assist them with the development of their businesses," adds Baker.

While Simeka TWS continues to do project work and handle specific expertise requests such as media relations or business-to-business communication, clients are more and more looking to the consultancy for a complete communications solution.

"Rather than following the traditional approach of utilising the services of a number of specialist agencies for advertising, public relations, marketing and design, clients are requesting a holistic solution to their marketing and communications needs," she says.