GRINDROD EMPOWERMENT DEAL
Posted on 23 April 2009
South African logistics and shipping company Grindrod Ltd has sold a 25% plus one share stake in its main South African operations to two empowerment enterprises
In terms of the Republic’s national empowerment policy, businesses in each industry are expected to sell or transfer equity to companies or investment funds that are largely owned by groups disadvantaged during the Apartheid era, including women, disabled people and non-white South Africans.
In this case, Grindrod sold a 15% stake to black empowerment enterprise (BEE) Calulo Petrochemicals Ltd, which focuses on the oil and chemicals industries, and 10% equity to the Adopt a School Foundation, for a combined price of R274m, although Grindrod itself financed most of the deal.
The new partners are locked into the deal for 10 years, although they are permitted to sell their shares to other BEEs after seven years.
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