Vodacom increases BEE ownership
Vodacom Group has announced a planned R17.5 billion black economic empowerment deal with Royal Bafokeng Holdings (RBH), Thebe Investment Corporation and existing BEE shareholder YeboYethu that will take its BEE ownership to about 20%.
A newly formed staff scheme, whose combined interests will be consolidated into a new YeboYethu BEE structure, will own shares in the JSE-listed group.
This transaction will be the largest broad-based BEE transaction in the sector, it said.
“It will replace and build on the R7.5 billion Vodacom South Africa BEE ownership scheme that was concluded in 2008 and anticipated to unwind on October 8, 2018, 10 years after its implementation.”
The new BEE transaction, in which the YeboYethu shareholding will be increased “substantially”, will be funded through a combination of third-party and vendor financing, reinvested equity of R4.5 billion from the existing BEE partners and facilitation from Vodacom Group.
The new transaction has a 10-year funding term, extending the relationship between Vodacom Group and YeboYethu, as its BEE partner, for at least the next 10 years, with the possibility to extend beyond that period.
About 4 600 Vodacom South Africa employees will participate in a new staff scheme funded by Vodacom Group to the value of R3.5 billion.
Through this vehicle, employees will own about 20% of YeboYethu. – TechCentral
This article was first published on TechCentral.