Leomat - BBBEE Launch
UPDATE TO BELOW ARTICLE : DEAL HAS BEEN CONCLUDED - below ARTICLE dated 17 MARCH 2016 information provided is correct as at 17 March 2016
3rd Generation Family-owned Civil Construction Company Breaking Ground with BBBEE deal
IN PARTNERSHIP WITH MENSTON HOLDINGS, LEOMAT CONSTRUCTION, A FAMILY-OWNED PRIVATE CIVIL CONSTRUCTION COMPANY, HELD A LAUNCH ON 17 MARCH 2016 TO SHOWCASE THE COMPANY’S 26% BLACK OWNERSHIP DEAL.
Leomat Construction is in the final stages of concluding a BBBEE deal that it believes will enable the company to increase its market presence on a wider national scale, secure succession within the company, as well as securing meaningful empowerment credentials.
The directors of Leomat believe that Menston is a true commercial partner in addition to being a BBBEE shareholder. Menston has shown its commitment to the transaction and to the success of the relationship by investing in a sizeable shareholding in Leomat, thereby aligning its interests with those of Leomat.
In terms of the deal, which is set to be concluded in April 2016, Menston Holdings will acquire 26% of Leomat Construction. The deal will boost Leomat’s total black ownership to 26% and will give the company black female ownership.
At the launch of the BBBEE deal at Leomat’s headoffice in Richards Bay, Leomat CEO Leo Mattioda could barely contain his enthusiasm.
“Leomat’s survival and success in its 37 year history is characterised by it’s ability to transform and adapt with the changing times. We have a formidable and dynamic team and I am fully confident that now with our new Menston partners Leomat is headed for even greater things. This BBBEE deal is nationally focused and all our partners in KZN can benefit from this first step into true BBBEE ownership”
The Launch not only introduced the leadership of Menston Holdings but also highlighted the succession for the company.
Speaking on the future of Leomat Matteo Mattioda added “I am often asked about the company’s future. Leomat has worked hard over the past 10 years to be able to move forward with this exciting new venture. The partnership with Menston formally aligns Leomat to our government’s empowerment goals, and expresses our commitment to both the long-term growth of Leomat and the development of our country”
“Leomat is currently tendering for works nationally in an effort to ignite further growth by broadening our client base and footprint. We believe that the high level of our service and engineering works, together with our win/win approach to problems, means that we provide our clients with the best cost, quality and safety standards. This commitment to striving for excellence needs to be credited to our employees.”
The desire to ignite growth in Leomat is a shared vision between the companies, and these sentiments were echoed by Menston Director Zamani Jali.
“Leomat Construction intends expanding to other parts of this country and into other countries on the African continent - starting with Gauteng. The company seeks to continue to fulfill an essential goal of creating jobs in the bigger national economic framework of our land. The main aim and objective of the Leomat | Menston partnership is to achieve those two medium-to-long-term goals. Our local and multinational business experience is such that we can add a lot of value to the company’s drive to grow. We are up to the task. First and foremost, we are here because we are business people. We are also here to participate in changing the complexion of Leomat Construction. We are here to help the company become a true South African business.”
This deal is a milestone for the company as it is the first BEE deal for the family-owned company. Leomat has always prided itself with successfully working closely with the local communities in whose area the company has undertaken works through Joint Ventures. Leo Mattioda pledged that the company will continue to partner with the local communities, continuing the culture of skills transfer within the civil construction industry through ongoing hands-on coaching and mentorship for local communities in which the company works.
KwaZulu-Natal MEC for Economic Development, Tourism and Traditional Affairs, Mr Michael Mabuyakhulu echoed Mr Mattioda’s sentiments for skills transfer in the industry.
“Having been a family enterprise for years, Leomat has certainly mastered the art of transferring skills and business sentiments from generation to generation. We therefore anticipate that the same trend will prevail with respect to the cross-pollination of strategic capacities amongst new business partners. The 26% black ownership stake in the Leomat business could be viewed as a strong foundation to broaden black participation, especially in capital intensive industries like construction.”
Mr Mabuyakhulu continued to praise Leomat for the steps taken to secure a meaningful deal in line with the transformation goals of the country. He went on to wish Leomat and Menston the best and saw the deal as a great example of true transformation for others in the industry, as well as other sectors, to emulate.
“We are proud to be associated with this new business development where Leomat Construction has taken a noble step of unbundling its shares to accommodate business partners, Menston, from the historically excluded communities. This we hope will have a butterfly effect across the industry which is expected to benefit from the planned government driven infrastructure development projects, but which will need to fully embrace transformation.”
The launch was held on 17 March 2016 in Leomat’s original workshop facilities in Alton, Richards Bay, and was attended by :
KwaZulu-Natal MEC for Economic Development, Tourism and Traditional Affairs, Mr Michael Mabuyakhulu;
Uthungulu District Mayor and First Lady of KZN, Cllr Thembeka Mchunu;
Local Leadership Nkosi’s;
Leadership from local industry
Menston Directors Stanley Subramoney, Zamani Jali and Thabani Jali;
Leomat Directors Leo Mattioda, Paolo Mattioda and Andrea Ramaccio;
Leomat Non-Executives Thembi Myeni and Zee Haniff;
Leomat Executive Leadership
Leomat Construction Visit www.leomat.co.za for more information on the company.
Menston Holdings Visit www.menstonholdings.co.za for more information on the company.
Telephone: 035 797 4611
PHOTO : Leomat Director Paolo Mattioda; Non-Executive Zee Haniff; Leomat Managing Director Leo Mattioda; Menston Director Stanley Subramoney; KwaZulu-Natal MEC for Economic Development, Tourism and Traditional Affairs, Mr Michael Mabuyakhulu; Menston Director Thabani Jali; Leomat Director Andrea Ramaccio; Leomat CFO Rosanna Brown; Leomat Contract Manager Matteo Mattioda; Leomat Non-Executive, Thembi Myeni; Bheki Ntuli; Menston Director Zamani Jali; Leomat Marketing Manager Elena Martins