Share

BAT bows to Zim indigenisation


Harare - British American Tobacco (BAT) Zimbabwe, a subsidiary of BAT International Holdings (UK) Limited, is set to donate shares to employees after the indigenisation ministry said the company is only 6.22% indigenous.

BAT is owned 56.95% by BAT International. The 6.22% indigenisation status effectively means shareholders like Old Mutual [JSE:OML] with a 19.1% stake are not considered indigenous, even though they hold the shareholding on behalf of policyholders.

In a circular to shareholders, BAT said it will have to meet 26% indigenous status by October 28 2012, 36% status by October 28 2013, 46% by October 28 2014 and 51% by October 28 2015.

To meet this year’s 26% indigenisation status, BAT will have to place at least 19.78% of its issued share capital in the hands of indigenous Zimbabweans by no later than October 28.

As part of the transaction, BAT International will donate 1 031 676 shares to an employee share ownership trust (ESOT). The ESOT will also acquire another 1 031 676 shares on arm’s length by way of subscription. In total the ESOT will get 10% of the issued share capital.

The second part of the transaction will see the creation of a corporate social investment trust (CSIT) which will acquire 2 220 324 shares or 10.76% on arm’s length by way of subscription.

BAT will provide financial assistance to the ESOT and CSIT To fund the transactions.

The proposed financial assistance will comprise loan facilities from BAT Zimbabwe at an interest rate of 8% per annum with no fixed repayment terms.

BAT is one of the companies performing quite well in Zimbabwe, having declared a 23 cents dividend in its last financials.

On the Zimbabwe Stock Exchange BAT is up 188.39% year-to-date.

 - Fin24

*Follow Fin24 on TwitterFacebookGoogle+ and Pinterest.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.2%
Rand - Pound
24.11
+0.0%
Rand - Euro
20.61
-0.1%
Rand - Aus dollar
12.38
+0.4%
Rand - Yen
0.13
+0.4%
Platinum
902.37
-2.3%
Palladium
1,004.75
-0.1%
Gold
2,155.09
-0.3%
Silver
24.96
-0.3%
Brent Crude
86.89
+1.8%
Top 40
66,027
-0.3%
All Share
72,208
-0.3%
Resource 10
53,305
-0.0%
Industrial 25
99,749
-0.7%
Financial 15
16,627
+0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders