Siyathenga Concludes Broad-Based BEE Deal

Posted On Tuesday, 17 July 2007 02:00 Published by eProp Commercial Property News
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Siyathenga Property Fund Limited is pleased to announce that it has concluded a significant empowerment transaction, whereby two broad-based consortia are to acquire an aggregate interest of 15% in the company

Andre von BulowSiyathenga will issue 22.3 million linked units to its empowerment partners at a price of R8.25 per linked unit. This price represents an 8.6% discount to the average price of Siyathenga linked units on the date that the Board approved the transaction, being 22 May 2007. Funding will be provided to the empowerment consortia by Rand Merchant Bank to enable them to purchase the linked units. Siyathenga will utilise the cash received to settle existing debt.

“In concluding the empowerment transaction, Siyathenga plays its part in facilitating the transformation of the economy by ensuring that the benefits of our BEE deal are truly broad-based,” comments André von Bülow, Managing Director of Siyathenga.  “We want to be able to embrace the spirit of transformation while achieving sound business objectives.  This transaction is expected to be beneficial to both the empowerment partners and Siyathenga unitholders.”

Siyathenga’s equity partners are the Tokoloho and Meago consortia.  The major shareholders in the Tokoloho consortium are the Sharpeville Tshwaranang Trust which owns 40%, and a group of experienced black business executives and professionals, including attorneys and an actuary.  The beneficiaries of the Sharpeville Tshwaranang Trust are the residents of Sharpeville who will receive assistance from the profit made by the Trust being channelled into projects focused on education, healthcare, child-care, care of the aged, sport, entertainment and business.

The Meago consortium is 100% black-owned and controlled, with a specific focus on property and related sectors.  Broad-based shareholders of Meago who stand to benefit from the deal are the National Children’s Rights Committee Trust and various community interests.  The executives of Meago are all professionals who are actively involved in the property market and have a proven track record in property investment and corporate finance advisory work.                 

“We were attracted to this empowerment deal due to the sincerity with which all parties have addressed transformation, and especially the broad-based component; the management skills and corporate governance of Siyathenga; and the significant growth potential that the company presents,” commented Sharif Hoosen and Siza Mzimela of the Meago and Tokoloho consortia.

“This deal reflects the vision that we at Siyathenga have for transformation which is to bring about real upliftment in communities.  We believe this transaction will provide value to Siyathenga by opening up new opportunities and relationships,” concludes Von Bülow.

Last modified on Thursday, 24 April 2014 10:01

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