JSE-listed Simeka Business Group is set to empower staff, key management and directors through its new broad-based black-economic empowerment deal.
Simeka says 20% of the company will be sold to two consortiums that comprise directors, management and staff. The consortiums will pay a total of R21.6 million for the shares, at a market-related price per share of 16c. Simeka's share last traded at 16c on Friday, the day of the announcement.
The company explains that much of its initial empowerment shareholding was made up of vendors that acquired Simeka shares as a result of acquisitions it entered into.
However, says Simeka, several restrictions on disposal periods have expired, and its empowerment shareholding has changed. The company wants to stabilise and enhance its BEE shareholding, which is why it is entering into a new empowerment deal.
Retaining staff
“The BEE transactions are designed to secure improved BEE credentials for Simeka over an extended period,” says the company in an announcement to shareholders on Friday. It adds that the deals will also ensure the empowerment of key members of management and employees, and secure their ongoing long-term commitment to the company.
Simeka's Web site states that it is majority black-owned; however, the company has not indicated what its current empowered equity ownership is.
A consortium made up of key executive directors, non-executive directors and key members of management of Simeka (BEECo) and another called MANCo, made up of management and employees, will collectively acquire 20% of Simeka.
Simeka is set to provide financing to the consortiums to allow them to acquire the 20% holding. However, this is subject to shareholder approval, it notes. The deal is also subject to several conditions.
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