TIGER TO OFFER 10% TO BLACKS
CONSUMER goods group Tiger Brands said yesterday it planned to place an additional 10percent of its shares with black stakeholders in a black empowerment transaction valued at about R2,8billion.
The company said total black ownership of South Africa's largest food company would rise to about 30percent, excluding mandated investments and foreign investments.
Tiger Brands transferred about 4percent of its shares to black shareholders in the first phase of the empowerment transaction in October 2005.
The new shares will be issued to a foundation set up for regional and community groups, a trust focused on assisting the tertiary educational requirements of the immediate families of black employees, and strategic black partners Brimstone Investment Corporation and Mapitso Consortium Investments (MCI).
Chief executive of Tiger Brands Peter Matlare said a structure had been created that "represented an important advance in our transformation strategy as it allows us to give a stake in our business to all our employees, irrespective of position or length of service".
"The foundation will enable us to help develop relationships with the disadvantaged communities with which we directly interact."
The Tiger Brands Foundation will obtain 5percent of the shares, a new black managers trust 1,56percent, the Thusani Trust (focused on tertiary education of families of black employees and strategic black partners) will get 1percent, general staff 0,44percent, and the two strategic black partners 2percent.
The company said the strategic black partners were chosen because of their experience and ability to add value to Tiger Brands, after a selection process started two years ago.
"MCI consists of business people who have a strong pre-existing relationship with Tiger Brands through their current and former status as non-executive directors.
"Brimstone has an excellent understanding of Tiger's operations and has a successful pre-existing empowerment relationship with the company," said Tiger Brands in a statement.
The strategic black partners will need to make a 5percent investment, while participating employees will not have to make any investment.