Vuma Reputation Management (Pty) Ltd has concluded a Broad-Based Black Economic Empowerment (BBBBE) transaction with three members of the company’s executive team.
The company is now 51% Black-owned and 30% Black female-owned.
Tshepo Sefotlhelo, Executive Director of Operations, Palesa Madumo, Executive Director of Strategy and Kgomotso Moalusi, Executive Director of Client Centricity and Media, have acquired the 51% stake through a loan provided by Vuma Reputation Management. The debt will be repaid from dividends generated by the company.
Vuma Reputation Management is South Africa’s leader in reputation management, crisis communication, stakeholder management, media relationship management and training. The company, founded in 2005 by one of South Africa’s foremost reputation management experts Janine Hills, has provided world-class advisory and consulting services to at least 50 JSE-listed companies and has operated in 10 African countries, where it has provided support to multi-national companies.
“As shareholders, our goal is to double the size of the business in the next three years through acquiring long-term clients and growing existing business. We also see huge potential for new opportunities on the rest of the continent, where we have affiliates that we will collaborate with to secure new business,” says Sefotlhelo.
The three shareholders have a long-standing relationship with Vuma Reputation Management, having worked as employees of the company before they were identified as potential shareholders. The company will continue to nurture and support the growth trajectory of each shareholder.
Vuma Reputation Management has contributed to the Marketing, Advertising and Communications (MAC) Charter’s Black ownership target of 45%. The new ownership structure of the company is also fully compliant with the Department of Trade and Industry’s B-BBEE Amendment Act No. 46 of 2013, and its 30% Black female ownership level is in line with South Africa’s gender transformation goals.
Moalusi says she was honoured to be a Black female investor in a slow transforming sector;
“As a Black African female reputation management and communications professional, I believe the sector requires fast-tracking, from a Black ownership perspective, therefore, this deal will certainly assist in the journey to levelling the playing field,” comments Moalusi.
Madumo says the transaction has provided her with an opportunity to play a significant role in South Africa’s transformation journey;
“This transaction is a great step for our industry and an achievement I am personally proud to be a part of. More importantly, it is a clear and strong response to our transformation goals as a country.” says Madumo.
Hills, as Founder and Managing Director of Vuma Reputation Management, will continue to provide leadership and expertise honed over the last 12 years to clients, shareholders, and employees alike.
“I am not lonely at the helm anymore. I could not have chosen better partners to work with to take our company to the next growth phrase.
“I am hugely excited that I have a young and capable team around me which will provide our clients with world-class services that will surely enhance their reputations,” concludes Hills.