The Adopt-A-Schools Foundation, which aims to improve education infrastructure in rural areas in South Africa, has been named a key beneficiary in Grindrod's R247 million Broad Based Black Economic Empowerment deal.
Announced on Monday, the empowerment transaction will see Grindrod South Africa, a Durban-based logistics and shipping company, issue 25% plus 1 share of its operations to the Adopt-A-Schools Foundation (10%) and Calulo Petrochemicals(15%), a black-owned oil and chemicals company.
The transaction forms part of Grindrod SA's commitment to sustainable social investment that will make a difference in the lives of disadvantaged South Africans, said the company in a statement.
The Adopt-A-Schools Foundation was founded in 2002 by Cyril Ramaphosa. It enables companies and individuals to participate in and improve the conditions of schools in historically disadvantaged communities by cementing long term, sustainable partnerships between adopters, donors and the school community.
The Foundation seeks to create equal access to learning opportunities for all South African children especially the disadvantaged by addressing core infrastructural needs.
Since its inception more than R19 million has been invested in the Foundation, resulting in the construction of 75 classrooms, 17 multimedia centres, 5 ablution blocks, 1 new school and a range of other facilities such as libraries, science laboratories and administration offices. In total 55 000 school children in South Africa have benefited from the Foundation's work.
“The share transaction with Grindrod is expected to create sustainability for Adopt-a-School, whose current model relies entirely on donations from third parties,” said Alan Olivier, CEO of Grindrod Limited adding that the Foundation also fits with Grindrod’s social responsibility focus on supporting education initiatives.
Both Adopt-a-School and Calulo are subject to a 10 year lock-in period, after which they may opt to sell their shares in Grindrod SA. In the interim, Grindrod will contribute approximately R1 million a year to Adopt-a-School by way of Corporate Social Investment expenditure for the ten year period of the lock-in.
