R/€ = 15.01Change: 0.01
R/$ = 14.13Change: 0.02
Au 1072.11 $/ozChange: 0.06
Pt 846.50 $/ozChange: 1.00
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 News
STORAGE SYSTEMS The Renault SA project used 40 t of light-duty racking and a catwalk system, and 80 t of heavy-duty, high-rise racking
Warehousing and storage solutions company Pandae Storage Systems has completed a multimillion-rand project for automotive manufacturer Renault South Africa at its new Isando-based parts distribution centre.
CONTAINER SOLUTIONS Container Agents has a special container-handling forklift truck, pictured here moving a 12 m unit
Pretoria-based building contractor JC van der Linde & Venter Building Projects’ ongoing need to rent storage containers on its building sites prompted the local company to establish Container Agents, a fast-growing container rental and sale company.
WAREHOUSING FORKLIFTS The forklift order for food retailer Shoprite Group of Companies comprises over 400 trucks
Forklift company Toyota Forklift, a division of equipment company Eqstra Industrial Equipment (EIE), has been awarded a major order to supply a comprehensive range of warehousing equipment to Shoprite Group of Companies food retailers Shoprite and Freshmark.
Latest News
Labour Minister Mildred Oliphant
The National Economic Development and Labour Council's (Nedlac's) consideration of the modalities of the introduction of a national minimum wage could be completed next year, Labour Minister Mildred Oliphant said on Wednesday. Addressing Cosatu delegates at the...
JSE-listed Vukile Property Fund’s distributions for the six months ended September 30, increased by 7%, in line with guidance.   Vukile boosted its distributable income by 27.7% year-on-year to R426.3-million and grew like-for-like net property revenue by 6.1%.   CEO...
Old Mutual Alternative Investments (OMAI) will acquire the 50% of African Infrastructure Investment Managers (AIIM) it does not already own, making it the sole shareholder of the Pan-African infrastructure investment manager. The acquisition marked an important...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
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,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
BARRY DWOLATZKY The CPD programme provides advanced skills required locally, and provides a stepping stone to Wits University’s Master of Engineering degree in software engineering
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...
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