Telkom has sold its security division, Telesafe, to a consortium called Praysa for an undisclosed amount, in a deal which forms part of the utility's drive to focus on its core business ahead of competition.
Praysa is led by the Communication Workers' Investment Company (CWIC), the investment arm of the Communication Workers' Union, and Protea Security, a Rebserve subsidiary.
CWIC is leading the Letlapa Security alliance, which has 51% of Telesafe while Protea Security holds 49% of the organisation.
A three-year security contract has been forged between the consortium and Telkom, which is expected to generate revenue of about R25M a year.
The security contract with Praysa is the fourth Telkom outsourcing agreement signed since mid-March, others being with Molapo Technology on the electronic repairs division, debis Fleet Management on the 19 000-vehicle fleet, and Fedics on the catering operations.
In terms of the agreement with Telkom, Praysa is providing physical security at 62 strategic Telkom sites across the country, including its headquarters in Pretoria. A service level agreement has also been negotiated.
Telkom Deputy Chief Operating Officer Bheki Langa said that like the other outsourcing transactions, the deal makes good business sense as it frees the utility up to focus on core communication activities.
Langa said the transaction had a strong black economic empowerment component, and that Telkom regarded the involvement of CWIC as a milestone in its current outsourcing programme.
Source: Business Day
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