Kaya 959 Reporter
Old Mutual has introduced an R2.8 billion Bula Tsela broad-based black economic empowerment ownership scheme to its employees and the general public, bringing its BBBEE ownership to more than 30%.
The transaction will be completed by issuing 205.3 million new Old Mutual ordinary shares for cash, representing about 4.36 per cent of the company’s share capital.
The group and its businesses will provide both nominal and actual funding for this.
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Kaya Biz with Gugulethu Mfuphi spoke to Old Mutual CEO, Iain Williamson about the BEE scheme.
LISTEN TO THE FULL CONVERSATION HERE:
Williamson says the scheme is aimed at achieving transformation goals that were set 5 years ago.
“When we listed in Johannesburg in 2018 we made a commitment to the Minister of Economic Development at the time that we would push out black ownership up to 30 within 5 years.”
“The deadline for us to deliver to that commitment is June next year. The deal we just announced is us giving life to that commitment we made. It’s also an ongoing journey over time towards transformation in South Africa. ” says Williamson.
He also said Bula Tsela (seSotho for “open or pave the way) transaction would exceed the 30 per cent target.
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