Related Articles
Top Stories
May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 24 2012 17:31
The Reserve Bank will maintain current interest rates, and a considerable reduction in the local petrol price is anticipated, says governor Gill Marcus.
May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Johannesburg - Anglo Platinum (Angloplat), the world's largest platinum producer, has said that it has reached consensus with labour organisations on the key terms and structure of a broad-based employee share participation scheme.
The firm added that it has established the Anglo Platinum Kotula Trust for an eight-year duration to facilitate the scheme on behalf of the beneficiaries. It will issue about 2.5 million shares to the trust, representing approximately 1% of the company's issued ordinary share capital.
The shares issued to the trust will be a combination of Anglo Platinum ordinary shares and a new class of unlisted ordinary shares.
The 1.5% scheme originally contemplated by Anglo Platinum didn't envisage the issue of a proportion of fully facilitated shares to the trust. Following a thorough consultation process with its recognised unions, and to reduce the risk of share price volatility to the scheme, the company has structured the scheme to include 40% fully facilitated shares through the issue of ordinary shares to the trust.
Dividends and distributions
The proposed 1% scheme is equivalent in cost to placing 1.5% of the company's issued ordinary share capital into a historically disadvantaged South African trust on a 100% "A" ordinary share basis.
The trust will receive the full dividend in respect of the scheme ordinary shares and dividends equal to one-sixth of an ordinary share dividend in respect of the "A" ordinary shares. These dividends will be paid out annually.
In addition, beneficiaries will receive capital distributions at the end of years, five, six and seven which may potentially be reinvested to provide ongoing benefits beyond the original term of the trust.
Johannesburg-based Anglo Platinum said it decided to implement the scheme to "incentives" its employees.
- Dow Jones