R/€ = 16.86
R/$ = 14.69
Au 1279.87 $/oz
Pt 1060.50 $/oz
Sep 13, 2007
Super Group shares drop on BEE dilutionBack
Shares in JSE-listed logistics firm Super Group plummeted by over 8% after it announced that its empowerment partner Peu Group would have to cut its stake in the company to pay back a loan.
Super Group said that Peu had to pay back financier Deutsche Bank for a 2004 loan it took out to buy a 25,6% stake in the JSE-listed company, but that it would not reduce its holding below 16,1%.
South African government strongly encourages companies operating in the country to sell a stake in their equity to blacks, who were excluded from the economy during apartheid.
Super Group said that Peu’s Peter Malungani would continue to serve as its chairperson.
“Super Group is committed to broad based black economic empowerment and will look to maintain its black economic-empowerment shareholding above 25%,” the firm said.
Super Group added that the stake sale would not affect its growth prospects for the year ahead.
Its stock was trading 5,54% down as at 13:13, at R12,80 a share.
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