R/€ = 15.10Change: 0.02
R/$ = 13.29Change: 0.11
Au 1154.55 $/ozChange: 10.40
Pt 977.00 $/ozChange: 24.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Aug 15, 2008

Logistics company announces BEE deal

© Reuse this

Diversified industrial and logistics company Barloworld has announced the details of its black economic- empowerment (BEE) deal, which is valued at R2,4-billion.

In June, the company announced that a 10% stake in the company would be sold to black participants, including strategic black partners (SBPs), employees, an educational trust and a community group.

A total of seven SBPs would hold R1,384-billion, or 5,88 %, of the issued ordinary share capital of Barloworld, while employees and black nonexecutive directors, would hold in aggregate 2,39%, or R562-million, of its shares.

An educational trust would hold 0,78%, or a R184-million stake, and community service groups (CSGs) would own 0,95%, or R224-million worth of Barloworld shares.

Speaking at the public presentation of the new BEE transaction, Barloworld chair- person Dumisa Ntsebeza said that Barloworld South Africa would be improved as a result of the transaction.

Barloworld CEO Clive Thomson indicated that empowerment and transformation were one of the group’s five key focus areas.

In a note to shareholders, the company stated that the effective black ownership of Barloworld’s South African operations, after excluding mandated investments and offshore assets, was about 29%.

Upon first inspection, analysts at the presentation regarded the BEE deal as a “very well constructed transaction”.

The funding structure and Barloworld facilitation of the deal would include a R1,504-billion term loan funding structure, by which Barloworld provided SBPs and CSGs with the ability to raise funding at a competitive credit margin.

In the case of the SBPs and black non- executive directors, all dividends paid within the first seven years would go towards loan repayments.

The education trust would receive a dividend, which partially went towards loan repayment.

“I think we are in good hands, and I have every confidence that over the next seven years Barloworld’s performance will be fantastic, and if Barloworld’s performance is fantastic, then the share price will rise, and dividend flows will be good, and the trans- action will be sustainable,” said Thomson.

A number of parties expressed interest in participating in the deal, but Barloworld stated that it had a rigorous selection process based on the Department of Trade and Industry codes.

The ability to add value to Barloworld, BEE credentials, a broad-based black share-holding level, a women shareholding level, and access to equity funding were characteristics under scrutiny.

The company stated that it had developed a strategy to support the principles of broad-based black economic-empowerment (BBBEE).

The aim of this strategy is to ensure a meaningful number of black directors and executives in Barloworld and its subsidiaries.

This includes a staff complement that reflects South Africa’s diverse demographic profile, as well as procurement policies that recognise BBBEE, and social development programmes that were primarily directed at developing and empowering previously disadvantaged communities.

Edited by: Laura Tyrer
© Reuse this Comment Guidelines (150 word limit)
Other Materials-Handling and Logistics News
While dust prevention can be used in materials handling operations, dust suppression is the preferred option, owing to low water consumption, especially in areas where water is scarce, says dust-control company Dust-A-Side. Other benefits of using dust suppression...
IN WORKING ORDER The cost to rehabilitate the two 500 t Chinese portal cranes for the Integrated Logistic Services’ oil service centre was more than R2-million
Global lifting solutions provider Konecranes has rehabilitated two 500 t Chinese portal cranes for the Angolan National Oil Company’s (Sonangol’s) Integrated Logistic Services’ (Sonils’) oil service centre, says Konecranes Southern Africa technical and training...
H930 BACKHOE LOADER The robust H930s backhoe loader series is particularly well liked by businesses that need smaller machines
Distributed by local earthmoving equipment distributor High Power Equipment Africa (HPE), automotive manufacturer Hyundai’s backhoe loaders have been well received by the local market, says HPE, the sole distributor of Hyundai earthmoving equipment in Southern...
Latest News
Updated 7 minutes ago Evraz Highveld Steel and Vanadium creditors would, on Tuesday October 13, vote on a business rescue plan, which included a recommendation that International Resources Limited (IRL), of Hong Kong, be allowed to purchase the company. The vote was initially set for...
Robinson Ramaite
Updated 24 minutes ago Coal mining and trading company Wescoal intends to raise R81-million equity capital to further develop its flagship Elandspruit Colliery as well as fund other growth options. To date,  JSE-listed Wescoal has self-funded growth projects from its own operational cash...
Updated 1 hour 45 minutes ago Dr Danie Cronjé will retire as Sappi chairperson at the end of February 2016. He was appointed to the board in January 2008 and took up the position of chairperson in March of that year.
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Updated 28 minutes ago In their private capacity, most individuals are well aware of the benefits and game-changing nature of mobile phones and tablets, as well as the associated application software (apps) available for these devices. The manner in which individuals interact and network...
BUSINESS LEADERS PANEL Adam Craker, Ivor Chipkin, Alan Hosking and Allon Raiz at the 6th IQ Business Active Growth conference
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
ASHER BOHBOT EOH’s corporate goals were originally aspirations, but the company is relevant and is making a difference in the territories it operates in
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96