First Isuzu dealership transforms to 100% black ownership
ENGINEERING NEWS / 12 AUGUST 2019 - 15.11 / IRMA VENTER
Bates Isuzu Shelly Beach is becoming the first 100% black-owned Isuzu dealership, in addition to being 65% woman-owned.
The third-generation, family-run business had been operational since 1937.
Bates Isuzu Shelly Beach dealer principal Noel Allchin says he is excited to be a part of the benchmark deal and even more so because of what it has meant for the future growth of the dealership.
“We have already experienced the value-add of our new ownership model with a 45-unit truck sale.
“Our new owners, Sipho and Fortunate Mdanda, have a genuine desire to succeed in the industry, with extensive knowledge of the fleet and body-building business and a remarkable amount of energy.”
While the 100% transformation deal was a complete buy-out by Isipho Capital Holdings, the Bates team of staff members and day-to-day operations of the dealership will remain unchanged, with Allchin staying on in an advisory capacity for a transitional period.
His successor will be Shaun Bartlett, who is currently serving as Bates Isuzu’s financial director.
Negotiations to buy the dealership started in August last year, with the necessary introductions made by Isuzu Motors South Africa (IMSAf).
The Mdandas were looking for an Isuzu dealership and have had previous business dealings with Allchin.
"The business wasn't even for sale, but we had long discussions and I made a formal expression of interest, which Allchin took to his board. We eventually came to a mutual agreement,” says Sipho Mdanda.
"The sale places a lot of pressure on us in terms of the responsibility that goes along with such a benchmark deal. It is exciting to show South Africa that it can be done.”
IMSAf CEO and MD Michael Sacke says Isuzu is committed to make transformation a business priority.
"We all have a responsibility to help uplift and grow our economy. We should always remember that an economy cannot grow by excluding people and that an economy which is not growing, cannot integrate all of its citizens in a meaningful way.
"Transformation is a moral imperative of our country. Adjacent to this, it should be viewed as a pragmatic growth strategy geared at realising the country’s full potential by bringing more South Africans into the economic mainstream.”
IMSAf aims to reach level 4 empowerment by 2021.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER