PHOSPHATE and phosphoric acid producer Foskor has announced a BEE deal worth an estimated R2,1billion ahead of its JSE listing.
Foskor, which is 85percent-owned by the Industrial Development Corporation and is a major contributor to its turnover and profit, will allocate 26percent of its value (the most recent valuation of Foskor was about R8billion) to a diverse grouping of BEE partners.
The IDC will fully fund the BEE transaction.
The major beneficiary is the Manyoro Consortium, a group of 12 different companies and organisations, which will get 15percent of Foskor's issued share capital. The remaining 11percent will be split between staff and local communities where Foskor operates in Phalaborwa and Richards Bay.
The Foskor BEE deal is the first in a two-pronged process that was meant to help it list by the end of the year. But IDC chief executive Geoffrey Qhena reiterated what he said last week at the IDC's financial results presentation - that the timing is not right for a listing.
Should the listing go ahead, the acquisition price, which will be at a discount, will be based on Foskor's initial public offering price.- Marcia Klein