JSE-listed technology services group Altron has launched an ICT skills education-focused trust, as it drives its broad-based black economic empowerment (B-BBEE) initiatives.
In a statement on Friday, the company says it believes the transaction provides an opportunity to be a catalyst for South Africa’s societal advancement and industry innovation.
According to Altron, the transaction will be used to enhance the current employee value proposition by providing funding to qualifying employees’ relatives and other stakeholders within the Altron ecosystem, giving them access to ICT-related education opportunities to address the increasing scarcity of ICT skills in South Africa.
It explains the transaction has been structured to create a sustainable funding structure that is not solely reliant on external bank funding, share price appreciation, or dividend payments.
The deal will also ensure Altron’s South African subsidiaries maintain their current B-BBEE rating and achieve full points on the BEE ownership scorecard with black-ownership (together with other existing initiatives) exceeding 30%, and complement existing B-BBEE initiatives.
Altron has incorporated a new sustainable broad-based trust to act as the new B-BBEE partner to the transaction. The purpose of the trust is to align Altron Group’s transformation and empowerment objectives with the objectives and B-BBEE legislation requirements, says the firm.
The trust will have the following features:
• Altron TMT, a wholly-owned subsidiary of Altron, is the founder of the trust.
• The trust’s trustee composition will be at least 50% independent, at least 50% black, at least 25% black women trustees and the chairperson will be independent and will not have a casting vote.
• The principal objectives of the trust will be to facilitate and promote the B-BBEE ownership of the Altron Group and increase access to education opportunities to address scarce ICT skills in South Africa.
• Seek to advance sustainable transformation within the Altron Group and South Africa, while improving access of deserving South Africans to educational opportunities and support to cultivate critical and scarce ICT skills at the tertiary levels and improve suitability for employment.
• The benefits of the transaction will accrue in the form of distributions to the qualifying trust beneficiaries, with eligibility determined with reference to a household income of less than R600 000 per annum.
• Support and recognise valued contributions of the employees of the Altron Group.
• Altron may, as and when required, provide support to the trust to enable it to annually achieve its stated objectives.
“As South Africa’s original technology brand, we’re passionate about solving real-world problems, from the everyday, to the epic,” says Werner Kapp, CEO of Altron.
“Businesses like ours can help tackle the very real problem of rising youth unemployment by bridging the skills gap and empowering young people for future jobs. I am proud to introduce Ascent – an ICT skills-focused education trust. Ascent will support young talent through bursaries and help foster an ecosystem of innovation and growth.”
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