This year produced another batch of empowerment deals across a number of major sectors.
Here are five significant BEE transactions that were concluded or are being worked on:
1. SERITI RESOURCES’ R2.3 BILLION PURCHASE OF ANGLO AMERICAN’S ESKOM-CONTRACTED 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.