First black ship repairer makes its entry

Terry Hutson
ELGIN BROWN & Hamer (EB&H) reaches back a long way - 105 years in total - but last week the ship repair company based in Durban, East London and Cape Town moved firmly into the new South Africa as black empowerment took a 50,5% stake.
EB&H chairman Tony Bennett, who has been associated with the company for many years, said he was confident for the future of his company and the industry. There was no intention of seeking a monopoly in the business and Elgin intended expanding elsewhere including into Africa.
"We have new partners now and a future step would be a listing on the Johannesburg Stock Exchange," he hinted.
Last week's transaction saw black-owned Remant Investment Holdings taking a 34% share of EB&H. This came about through existing shareholder BAE Systems diluting its share from 34% to 22,5%, while Nedcor came on board with funding assistance. Other black-owned interests, including Zenza Investments and senior black personnel employed at the company, already own another 16,5 %.
Remant is a new company owned by three partners, Moses Tembe (South African Shipyards), Loyal Ndwandwe and Coleman Ndungane, who each now hold directorships in EB&H.
The voluntary dilution of shares in the company by BAE Systems had been taken "because it is the right thing to do, we have a social responsibility and this is part of our fulfilling it," said BAE's MD Nick Frank.
The dilution is also useful in helping his company, which operates in the
international defence, aerospace and maritime industry, to fulfil offset requirements over the arms deal.