Octagon concludes R24 million BEE deal

As part of the agreement, a 30 percent equity stake in Octagon SA has been purchased by the consortium with a view to ultimately increasing the shareholding to 49 percent over the next five years. The shareholders comprise: Soto Ndukwana; Saki Macozoma; Sifiso Buthelezi; Thami Sibiya representative of Selano Investments; Khehla Shubane and Qondisa Ngwenya, Deputy Group M.D. of Octagon SA. With Ndukwana as Chairman of the consortium, the businessmen will hold an 80 percent shareholding of the consortium whilst the remaining 20 percent shall be held by an Octagon staff trust.

Comments Octagon Group Managing Director, Neill Duffy, "The individuals that make up this consortium are all businessmen with relevant industry expertise and who we believe can add real value to our business for the benefit of our clients, staff and shareholders. Their insight into the workings of the new South Africa from both a business and consumer perspective will play a major role in our efforts to ensure Octagon's relevance in the current market."

The agreement also makes provision for the establishment and funding of the Octagon Foundation which has been set up to drive Octagon's corporate social investment initiatives within the industry in which it operates. Beneficiaries of Octagon's corporate social investment activities to date include the Nelson Mandela Children's Fund and the Gary Player Foundation for whom Octagon has raised over R 7 million in the last four years through the annual Nelson Mandela Invitation golf tournament and the Octagon Red Fund in aid of Reach for a Dream through which Octagon has helped a number of children realise their dreams.

Says consortium Chairman, Soto Ndukwana, "Octagon is the number one sponsorship and event marketing company in South Africa handling the industry's top events like the Coca-Cola Cup and blue chip clients such as MTN, Engen, Eskom, Old Mutual and ABSA, the timing is certainly right for us to take it to the next level through equity participation and the opportunities thereafter are unlimited."

Adds Duffy, "Octagon is committed to the principles of employment equity with over 50 percent of our full-time staff being disadvantaged individuals and 44 percent of our total procurement spend being placed with black empowered suppliers. Equity participation was thus the next logical step for us in becoming wholly representative of the new South Africa. We have every intention of developing a close working relationship with our new partners and will embrace their expertise and input."

Octagon is part of the Interpublic Group of Companies, the world's largest advertising and marketing communications group, and is listed on the New York Stock exchange. Octagon Worldwide employs over 1 500 people operating out of 70 offices in 23 countries on all major continents. In South Africa, Octagon employs 90 people throughout its three offices in Cape Town, Johannesburg and Durban. The agency has been awarded the Financial Mail Ad Focus Specialist Agency of the Year in both 2001 and 2002 and is ranked as South Africa's leading sponsorship Agency as per BMI research conducted in 2002.

OCTAGON BEE CONSORTIUM MEMBERS:

1. Soto Ndukwana

Soto is the Executive Chairman of Global Makana Strategies as well as former Chairman of Makana Investments (to Feb 2003), Global Docustore and Deputy Chairman of Glomafin.

Soto spent ten years on Robben Island as a political prisoner. In 1993 he worked for South African Breweries and soon became an Executive Director for Corporate Affairs (Marketing Division).

Together with Peter-Paul Ngwenya, Soto established Makana Investment. He remains a trustee of Makana Trust.

He is currently Co-Deputy Chairman of the Centre for Development and Enterprises and a board member of Zimesele Underwriting and Ebony Consulting International (Africa).

2. Sifiso Buthelezi

Sifiso is the Chairman of Autshumatu Ferries, the Robben Island Ferry Company

Previously the CEO of the National Gambling board (1999–2003) and former advisor to the premier of Mpumalanga, Sifiso is a highly influential figure in his own right.

Sifiso is also a board member Transnet.

3. Khehla Shubane

Former CEO of the Mandela Foundation and now a director at FCB South Africa, Khehla is also director at Rand Merchant Bank and Chair of National Roads Agency.

4. Saki Macozoma

Saki Macozoma is perhaps the most well-known member of the team. Also a former political prisoner and activist, Saki is a leading figure in South African business.

He has served in many capacities notably: