The recent stakeholder change at WBS has garnered a great deal of attention. But the company and incoming stakeholder, Blue Label Investments, are keeping details under wraps. THE STAKEHOLDER BUYOUT at Wireless Business Solutions (WBS) has attracted much attention from the marketplace, yet very little is known - and even less is likely to still be revealed - about incoming stakeholder, Blue Label Investments (BLI).

Best known for its support of the national lottery network and its iBurst offerings, WBS has received a fair amount of media attention in past years and has been tagged as one of the wireless service providers to watch in coming years by telecommunication industry commentators. Conversely, BLI has kept its prior dealings largely under wraps avoiding the media wherever possible.

In principle, the transaction is simple - BLI is acquiring the 40% shareholding held by US-based company, GTech Corporation. Nevertheless, it is the companies who wish to remain behind the scenes - and the introduction of Alan Knott-Craig Junior to WBS`s management team - that provide food for thought.

For instance, why would GTech Corporation want to sell their shares in the local company now? On one hand it could be that WBS is looking to focus on its broadband offerings, whereas GTech`s business interests are confined to gaming technology, particularly for the lottery market. Alternatively, it could be that Lottomatica - an Italian group seeking to acquire GTech - is less than interested in the local market and wishes to have the interests sold off before the deal goes through mid-2006.

Either way, GTech is interested in selling and for WBS it makes sense that a local company gets involved. Enter BLI. The private investment company was founded by brothers Mark and Brett Levy and purports to have some level of empowerment status. Beyond that, co-founder, Brett Levy is saying nothing: "We are a private investment company that wishes to remain just that - private."

All the same, iWeek has been able to uncover some of its interests in the local market. For instance, BLI with initial backing from Ellerine brothers, Sidney and Eric, is the holding company of The Prepaid Company - one of the country`s largest distributors of pre-paid airtime. The company also entered an association (including start-up funding) with Cape Town-based IWise Communications - a developer of data over voice topology - in September 2004. Additionally, BLI has reportedly been keen to partner in joint ventures. Early in 2005, the company pledged its services to ZOK Cellular, a cellular-based joint venture between the Zion Christian Church (ZCC), Orlando Pirates and Kaizer Chiefs. As part of the deal, BLI provided back-office support, promising to invest R25 million in the rollout of retail outlets, while Vodacom offered infrastructure support.

BLI was also involved in the Public Investment Corporation (PIC)-Telkom share warehousing controversy. In November 2004, the PIC purchased a 15.1% Telkom stake from Malaysian company, Thintana Communications LLC, while waiting for the Elephant Consortium to raise funds. PIC profits and changes to the agreement mid-2005 aside, BLI was a member of the Buffalo consortium - led by the Women`s Investment Portfolio Holdings - which was to receive a portion of said shares.

And although there is no direct relationship between the companies, BLI holds shares in some of Richmark Holdings interests too. These include One Communications - provider of corporate telecommunications solutions; LiquiFire - an alternative energy source provider; Guys Without Ties - developers of biometric devices; and Cellfind, the location-based service provider which gave up its managing director - Knott-Craig Jnr - to WBS.

Although Knott-Craig Jnr (son of Vodacom chief Alan Knott-Craig) retains his interests in Cellfind, his primary function is now that of MD of WBS. According to WBS CEO, Thami Mtshali, Knott-Craig Jnr`s appointment is a result of WBS asking BLI to suggest appropriate candidates to boost the organisation`s operational side, rather than a desire to insert a BLI representative.

Nevertheless, the combination of Knott-Craig Jnr`s relationships with cellular providers Vodacom, MTN and Cell C, together with BLI`s broader market interests, could suggest that WBS may be seeking to forge new partnerships and introduce new services in the months ahead.

When asked of potential partnerships with voice providers or introduction of voice to the organisation`s offerings, Knott-Craig Jnr would only comment: "We have no plans to enter into partnerships, but we are open to opportunities."