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HRIS LUVHANI, CHAIRMAN of Ngululu Bulk Carriers, says prior to 2003 his investment company had no interest in expanding into the transport and logistics sector.
BEE partner wanted In the late 1990s, Lukas Potgieter, who founded the company in the 1980s, was under pressure from his mining clients to become more BEE compliant as per the mining charter. “Prior to our introduction, Potgieter had tried a few empowerment models, which were not successful, and he almost got his fingers burnt in the process of trying to find the right BEE partner. It was, however, through an acquaintance that I was introduced to him and his company, Lukas Potgieter Vervoer. “When I first met Potgieter in 2003, I told him that I did not know anything about the transport industry and could not buy a 26% stake in order for him to be compliant according to the mining BEE requirements and therefore appease his clients. However, I told him that I would be interested in taking an initial 10% investment stake in the company and if he was serious about having a true black empowerment partner actively involved in his business, as opposed to simple window dressing, then I would increase my investment.” Another condition Luvhani had when purchasing the 10% was that should he want to increase his stake in the company both parties had to agree how much he could increase his stake to. When Luvhani’s company purchased the first 10% stake it was therefore agreed that if Potgieter was genuine and wanted a proper empowerment partner Luvhani would then take a controlling stake in the company within five years. The deal was signed in December 2003 and was to take effect in April 2004. By the end of July 2004, both Luvhani
and the current CEO Freddy Sinthumule had literally fallen in love with the company and decided to increase their stake to 26%. By 2008, Luvhani wanted to take control of the company, allowing the owner to retire. In 2009, he purchased a further 25% enabling Ngululu group to take control. By the end of that year, a share buyback of Potgieter’s remaining 9% saw Ngululu increasing its stake to 56% of the issued shares in the company.
Name change It was at this time that Luvhani realised they had to look at changing the name of the company to reflect the owners, at the same time sending out a strong message to the market that there had indeed been a serious empowerment deal within Lukas Potgieter Vervoer. “Some of our major clients had been pushing for a name change. I am a sensitive man and knowing the dynamics of the industry I did not want to dent Potgieter’s image because he had spent many years building up and establishing a credible company. But one day after we had seen a client, Potgieter turned round and said that “some major clients are complaining about the company’s name and it is time to change the name to reposition the company in the prevailing dispensation”. Following Lukas Potgieter’s retirement in May 2009, the company was rebranded as Ngululu Bulk Carriers and rebranding of the assets was completed by the end of December in the same year.
Successful operations “I am extremely proud of where the company stands
By the end of July 2004, both Luvhani and the current CEO Freddy Sinthumule had literally fallen in love with the company and decided to increase their stake to 26% TWA | Jan/Feb 2013
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