http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.20Change: 0.11
R/$ = 11.08Change: 0.00
Au 1216.40 $/ozChange: -0.63
Pt 1339.00 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 15, 2008

Logistics company announces BEE deal

Back
Africa|Aggregate|Barloworld|Barloworld South Africa|Education|Industrial|Africa|South Africa|Logistics|Service|Clive Thomson|Dumisa Ntsebeza
Africa|Aggregate|Education|Industrial|Africa||Logistics|Service|
africa-company|aggregate|barloworld|barloworld-south-africa|education-company|industrial|africa|south-africa|logistics|service|clive-thomson|dumisa-ntsebeza
© 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
The JSE-listed Imperial group breached the R100-billion revenue mark for the first time in the past financial year, ended June 30. Revenue was up 12% on the previous financial year, to R103.6-billion, with operating profit up 2%, to R6.2-billion.
Established in 2014 through the merger of South Africa’s two leading industrial packing solution entities, PackSolve is the largest diversified industrial packaging group in the Southern African Development Community. The company, which has an order book of...
Walter Hill
Eqstra’s Contract Mining and Plant Rental division served as a heavy drag on the company’s results for the year ended June 30, released on Tuesday. Group revenue increased by 9.8%, to R10-billion, compared with the previous financial year, while operating profit...
More
 
 
Latest News
President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
JSE-listed York Timber Holdings on Friday said it expected its operating profit for the year ended June 30 to be between 25% and 30% lower than that of the prior year. As a result of the lower operating profit, combined with a 1% increase in the company’s biological...
Engineering solutions provider ELB Group has reported an 18% increase in turnover for the year, boosting overall income, from R1.9-billion in 2013, to R2.3-billion for the 12 months ended June 30. Describing this as “a satisfactory result, given the current difficult...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
MANUFACTURING CAPABILITY Reliable Transformers designs and manufactures dry-type and oil-filled power and distribution transformers up to 3.5 MVA
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
GHAREEB SAAD Kaspersky Lab products contain strong heuristics engines that monitor suspicious file execution to detect attacks
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
MICHAEL FLETCHER Real-time information available to government when citizens use publicly funded Wi-Fi networks will enable it to communicate with citizens and provide services
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks