JSE-listed Barloworld Group shareholders have voted in favour of the company's broad-based black economic empowerment (BBBEE) share scheme, Khula Sizwe, following an extraordinary general meeting.
The industrial brand management group on Friday, said this transaction will pave the way for it to increase its BBBEE ownership contribution by 14 percent, improving overall ownership to around 48%, excluding mandated investments.
The transaction will come into effect later this year on 1 October 2019. Its two main structural components, the Barloworld Empowerment Foundation and the Property Company (PropCo).
The Foundation will have a three percent stake directly in Barloworld Limited and will focus on education, youth development and poverty alleviation.
PropCo will sell certain operating property portfolio to a black-owned consortium, Main Street, for R2.7-billion, with employees, management and the black public owning shares in PropCo.
Barloworld said the Black Public Scheme public offering will launch in April 2019 and this will allow black South Africans to subscribe to the shares in PropCo.
Dominic Sewela, Barloworld chief executive, said this was affirmation from their shareholders that the group was on the right track.
"We have been mandated to execute on our strategy as we pursue our growth ambition. Importantly this is also a commitment by Barloworld to continue playing an active role in South African corporate entities’ clarion call to create an inclusive economy," Sewela said.
"Khula Sizwe gives us an opportunity to leave a lasting socioeconomic legacy as we address our country’s national priorities."