Harare - British American Tobacco (BAT) Zimbabwe shareholders unanimously approved its indigenisation proposal at an extraordinary general meeting held on Friday morning. This means that 26% of the shareholding will be transferred to indigenous investors.
Under the new shareholding structure, 10.74% will go to a corporate social investment trust that will focus on the development and support of indigenous tobacco growers, 10% to the employee share trust for the benefit of permanent BAT Zimbabwe employees, while the remaining 5.26% will be retained by existing indigenous shareholders.
The authorised share capital increased to US$20.63m from $17.38m.
The indigenisation thresholds applicable to the manufacturing sector were gazetted in General Notice 459 of 2011. This requires companies in the manufacturing sector to comply with indigenisation as follows:
• Within the first year, 26% shareholding is required to be held by indigenous Zimbabweans by October 28 2012;
• Within the second year, 36% shareholding is required to be held by indigenous Zimbabweans by October 28 2013;
• Within the third year, 46% shareholding is required to be held by indigenous Zimbabweans by October 28 2014; and
• Within the fourth year, 51% shareholding is required to be held by indigenous Zimbabweans by October 28 2015.
The group said it will continue to work with the ministry as well as the National Indigenisation and Economic Empowerment Board on the indigenisation requirements.
BAT Plc will donate $3m to the employee share trust, translating to $20 000 per employee.
- Fin24