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Lereko-led consortium gets 25% of Ethanol Africa

Business Report - By Ingrid Salgado

Thur, 22 February 2007

Cape Town - A black economic empowerment (BEE) consortium led by Lereko Holdings, the investment vehicle of Eskom chairman Valli Moosa, has taken a 25 percent stake in Ethanol Africa.

Ethanol Africa is building the country's first maize-to-biofuels plant that will produce more than 500 000 litres of bioethanol and biodiesel. It plans to roll out eight such plants in maize producing areas at about R8.75 billion.

The BEE deal announced yesterday makes Ethanol Africa compliant with the liquid fuels charter that requires a minimum of 25 percent black ownership.

The BEE consortium comprises Lereko Investments, Mvelaphanda Holdings, a Free State broad-based BEE group and broad-based women's groups.

Sterling Waterford had a prior involvement with Moosa, who has a stake in the company. Gregor Paterson-Jones, Sterling Waterford's chief executive, said the company had relationships with executives of Mvelaphanda.

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