MA­JOR EM­POW­ER­MENT DEALS IN 2018

This year pro­duced an­other batch of em­pow­er­ment deals across a num­ber of ma­jor sec­tors. Le­setja Ma­lope looks at five sig­nif­i­cant BEE trans­ac­tions that were con­cluded or are be­ing worked on

CityPress - - Business -

1 SERITI RE­SOURCES’ R2.3 BIL­LION PUR­CHASE OF AN­GLO AMER­I­CAN’S ESKOMCONTRACTED COAL MINES

This was a sig­nif­i­cant mile­stone in that Seriti, which is co-owned and chaired by Anna Mok­gokong, boasts an im­pres­sive blend of black own­er­ship in Mike Teke’s Masi­mong Group and Sandile Zungu’s Zungu In­vest­ments Com­pany, as well as Thebe In­vest­ment Cor­po­ra­tion and Mok­gokong’s Com­mu­nity In­vest­ment Hold­ings.

2 VO­DA­COM CLAIMS YEBOYETHU IS SOUTH AFRICA’S BIG­GEST BEE DEAL IN ICT, AT R17.5 BIL­LION

The deal saw part­ners and a newly es­tab­lished em­ployee scheme ex­chang­ing their share­hold­ing in Vo­da­com SA for a share­hold­ing of be­tween 5.8% and 6.25% in the group. Time will tell if this deal was worth the hype. The trans­ac­tion re­sulted in Vo­da­com’s BEE share­hold­ers set­tling their out­stand­ing ven­dor fund­ing, and Royal Bafo­keng Hold­ings and Thebe In­vest­ment ex­chang­ing their share­hold­ing in Vo­da­com for shares in YeboYethu, which will de­clare a R3 bil­lion spe­cial div­i­dend to its share­hold­ers.

3 BARLOWORLD’S HIKE IN BROAD-BASED BLACK ECO­NOMIC EM­POW­ER­MENT OWN­ER­SHIP

The stake held by em­pow­er­ment en­ti­ties in Barloworld was hiked to 48% af­ter it sold a 14% stake in its lo­cal prop­erty port­fo­lio to a newly es­tab­lished ma­jor­ity black-owned Propco in a R3.5 bil­lion deal that en­hanced Barloworld’s em­pow­er­ment cre­den­tials.

4 SAN­LAM SELLS MORE OF ITS SHARES TO BEE SHARE­HOLD­ERS

The in­sur­ance gi­ant sold 5% of its is­sued shares to new and ex­ist­ing BEE share­hold­ers in a deal that was worth about R8 bil­lion. The mul­ti­fac­eted deal in­creased di­rect black share­hold­ing to 18% and black eco­nomic own­er­ship, which com­bines di­rect and in­di­rect hold­ings, to 35%.

5 SOUTH32 MAKES SOLID MOVES TO SELL ITS SOUTH AFRICAN COAL AS­SETS

The an­tic­i­pated sale of South32’s coal as­sets, which in­clude the Khutala and Klip­spruit col­lieries, the Wolvekrans Mid­del­burg Com­plex, as well as three pro­cess­ing plants will fetch a sig­nif­i­cant amount for the com­pany.

South32 has also ex­pressed its de­sire for the as­sets to be off­loaded to black hands. Among the prospec­tive bid­ders are a con­sor­tium led by Black Royal Min­er­als, Seriti Re­sources and the Min­ing Fo­rum of SA. The deal is ex­pected to be con­cluded in the first half of next year.

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