Lereko Technology

In September 2007 Lereko announced a broad based empowerment transaction with Cisco Systems, Inc (“Cisco”) – a worldwide leader in networking technology that transforms how businesses, governments and people connect and collaborate.

The deal allows a grouping including Lereko, a trust representing Cisco's Black South African employees, and a newly created education trust to acquire long-term share participation rights, represented by shares in parent company Cisco Systems, Inc., with a value equal to a 25,1% stake in a newly created South African services organisation.  The organisation was created by Cisco to support the needs of major South African organisations through continuous innovation on information, communication and technology (ICT) solutions.

Lereko continues to add value by ensuring Cisco delivers transformational professional services in South Africa. The transaction is further proof of both Lereko’s and Cisco’s commitments and contributions towards South Africa's social and economic growth and service delivery initiatives.

Lereko will have certain voting rights in the local entity and will hold long term share participation rights in the form of common stock of Cisco Systems, Inc. of equivalent value to the underlying stake of the South African services operation.  This approach provides access not only to the value of Cisco’s South African services operation but also to the value of Cisco’s businesses on a global basis through the holding of Cisco Systems, Inc.’s publicly traded common stock (listed on Nasdaq). This structure also is designed to provide Lereko with a more liquid asset, following the expiration of the BEE holding period, than holding shares of a non-trading entity.

Lereko supports Cisco’s continued commitments to and investments in the future economic transformation of South Africa.  Lereko believes these investments will also stimulate increasing collaboration on public-private partnerships by other multinational corporations in South Africa.