Written by Lindy Mtongana
The deal will result in Barloworld South Africa achieving black ownership of 28.99%.
In a statement released on Thursday, Barloworld stated that the deal will see strategic black partners hold 5.88% of the shares, while 2.39% will go to company employees, 0.78% to an educational trust and 0.95% being issued to a community service group.
“Today’s announcement heralds a significant achievement at the equity level,” said Clive Thomson, CEO of Barloworld. “In this transaction, we will create, together with our strategic black partners, employees, community service groups and an educational trust, a meaningful empowered company.”
Employees of Barloworld South Africa have been allocated 1% of the shares in the transaction with the average share value for each employee being a minimum of R15 000. Current and future managers will receive 1.35% of the equity deal.
“The employee participation in our BEE transaction is an essential element. It is vital that we create mechanisms to attract and retain future black management into the Barloworld organisation,” said Thompson.
Among the strategic partners who will benefit from the BEE deal is Ayavuna Women’s Investments, an entity whose activities are directed towards assisting girls and women in rural areas. “Our involvement in this transaction adds diversity in the form of black women with a rural development angle,” said Hixonia Nyasulu, Executive Chair of Ayavuna.
Other beneficiaries include the Gandaganda Empowerment Trust, Ikamva Labantu Empowerment Trust which provides health, education, skills and shelter to communities in need throughout the country and the Shalamuka Foundation which provides skills workshops to public school teachers.
The transaction value of R2.4 billion is based on the weighted average share price of R108.37 per ordinary share as calculated at the close of trade on Friday 6 June.
“All participants will benefit from Barloworld’s growth both locally and internationally as the shareholding is at the listed company level,” said Thompson.
The deal will go into effect in August 2008.
For more information visit Barloworld’s website or contact the company on (011) 445 1000