The empowerment process took two years and concluded with an equity transaction in which MCI European Holdings sold 30% of its ordinary shares in the issued share capital of UUNet SA to a wholly owned subsidiary of Jay and Jayendra (J&J).

Angela Gahagan, country manager for African operations at Verizon Business SA, says the sale forms a pivotal component of the company’s empowerment status.

“The direct equity portion is further supported by the company’s solid rankings in terms of employment equity, supplier and partner procurement, as well as elements in other areas of the business.”

She says ensuring that local compliancy structures support local development initiatives is an imperative principle of the Verizon operating status globally.

“Verizon decided that to be a credible player in the market it has to follow the political and socioeconomic requirements of the environments in which we operate.

“The deal that has been signed means that J&J will appoint a director to Verizon SA’s board and it will also influence the day-to-day running of the South African business. Therefore, we have concluded an empowerment deal that extends beyond shareholding in a company.”

She says the purchase price amounts to millions of rands and was determined by an independent valuation based on UUNet’s current and future business and financial position and various market opportunities of which it will take advantage as the market is deregulated.