'Holcim's BEE must be sustainable'

Posted On Tuesday, 12 September 2006 02:00 Published by Commercial Property News
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Aveng says that it is committed to sustainable black economic empowerment for Holcim SA, in which it holds a 46% stake

Carl Grim Aveng's CEOSouth African listed construction and engineering group Aveng said at its presentation following the release of its annual results, that it was committed to sustainable black economic empowerment (BEE) for Holcim SA, in which it holds a 46% stake. 

"Aveng and Holcim are talking to each other - and we'll continue to talk in order to plot a way forward," Carl Grim Aveng's CEO said.
Swiss owned Holcim announced in August that it had signed a conditional agreement to sell its majority stake in Holcim South Africa to a Black Economic Empowerment Consortium for 6.828 billion rand.
Holcim has signed a conditional agreement to sell 85% of its stake in Holcim South Africa to a BEE Consortium based on an enterprise value of 15.5 billion rand. Holcim would retain a 15% share in the newly founded AfriSam, which would hold a 54% stake in Holcim South Africa.

AfriSam Consortium is a broad-based BEE company established for the proposed transaction. Its shareholders are to include all employees of Holcim South Africa as well as a number of charities and broad-based groups, and will be led by new entrant BEE company Bunker Hills Investments. 

Grim said that regarding the transaction, Aveng held "pre-emptive and tag-along rights."
He emphasised that the company was still under cautionary with regard to the Holcim transaction.
Aveng said that it would carefully consider its fiduciary duty to shareholders in the context of its commitment to sustainable Black Economic Empowerment as well as the ongoing competitiveness of Holcim (South Africa) and its ability to meet the funding requirements of future capacity expansion.

Last modified on Wednesday, 03 July 2013 19:01

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