Barloworld unveils new B-BBEE deal
The deal will increase Barloworld's black ownership to 48 percent.
Listed distribution group Barloworld has unveiled a Broad-Based Black Economic Empowerment (B-BBEE) deal that will include the sale of its shares and local property portfolio to a foundation and majority black-owned company.
The first part of the deal will involve Barloworld issuing 6 578 121 of its ordinary shares – constituting three percent of its entire issued share capital – at R0.05 each to the newly formed Barloworld Empowerment Foundation.
According to the company, the value of shares offered to the foundation represents a discount of 99.96 percent to the 30-day volume weighted average price per Barloworld share.
“The foundation’s focus will be on poverty alleviation, education, youth development, and advocacy targeted at the marginalised and underserviced citizens who are currently largely excluded from the economy,” the company said in a statement on Monday.
The company will also sell certain immovable properties to Main Street 1646 Limited, a majority black-owned and controlled company, for R2.722 billion.
“Barloworld is committed to improving its B-BBEE status. All Barloworld South African business units require an improvement of their black ownership to remain relevant and competitive,” the company said.
“As a responsible corporate citizen, Barloworld is supportive of South Africa’s efforts to transform the racial profile of the economy. Barloworld intends to conclude the B-BBEE transaction which includes its staff, communities and the broader black public as participants.”
The deal will increase Barloworld’s B-BBEE ownership to 48 percent (excluding mandated investments).