Kagiso snaps up 30% stake in Resolve

By Time of article published Jul 3, 2003

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Johannesburg - Kagiso Enterprises, the private equity division of Kagiso Group, had snapped up a 30 percent equity stake in the Resolve Group, a human resources and labour consultancy company, for an undisclosed amount, it said yesterday.

According to Kagiso Group, which is known for its radio assets, the transaction would increase the group's exposure to the consulting market.

Kagiso Group said the transaction would help Kagiso Enterprises to build further in-house advisory capacity.

The deal would push black shareholding in Resolve Group to 44 percent.

Eric Molobi, Kagiso Group's executive chairman, said the focus and values of Resolve Group reflected those of Kagiso Group.

"The fact that we know and trust the founders is icing on the cake," Molobi said.

Kagiso Group said the Resolve Group had a good track record as a supplier of high-level services in its five years of operations.

Resolve provides services and advice to state departments, parastatals and municipalities.

According to the transaction, Molobi would replace David Storey, the founder of Resolve Group, as a non-executive chairman. Storey would remain with the group in executive position.

Peter Harris, the managing director of Resolve Group, said the company was pleased to partner Kagiso Group.

"It is important to partner with an empowerment company that understands our work values and our contribution in this sector," said Harris.

Kagiso Group had a successful track record, he said.

Resolve Group said it was well placed to help organisations across sectors to respond to challenges of the labour market.

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