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Johannesburg - Trading and distribution group Bidvest on Thursday announced the conclusion of a R1.6bn share repurchase agreement with its Dinatla empowerment partners.
The Dinatla consortium is majority owned by prominent black entrepreneurial businesses and also comprises broad-based black economic empowerment (B-BBEE) companies.
The consortium acquired 15% of The Bidvest Group [JSE:BVT], which amounted to 45 million shares. The arrangement was refinanced three years later when Dinatla reduced its stake to a residual holding of 26.5 million ordinary Bidvest shares.
In a statement released on Sens, the JSE's news service, Bidvest said the transaction gave Dinatla constituents the certainty of early cash realisation and facilitated repayment of Dinatla's funding arrangements well ahead of the settlement date in March 2012.
Value in excess of R2bn had been delivered to Dinatla shareholders since 2003 when the Bidvest-Dinatla relationship was formed.
The buy-back involved the purchase of 12 million Bidvest shares from Dinatla at a net repurchase price of R131.75 per Bidvest ordinary share.
"The transaction is hugely positive for all parties and is further evidence of the tremendous success of our partnership with Dinatla," said Brian Joffe, Bidvest's CEO.
"The share repurchase not only unlocks considerable value for Dinatla, it means our partner's remaining equity in Bidvest is totally unencumbered.
Going forward, the buy-back ensures continued value accretion for all Bidvest shareholders."
The structure of the empowerment transaction with Dinatla had demonstrated its resilience across various market cycles, Joffe said, and added that it achieved the strategic goals set in 2003 of significant and sustained gains for empowerment beneficiaries.
On behalf of the consortium, Tania Slabbert said the unique BEE transaction represented more than R2bn of value realised for Dinatla.
"The transaction is remarkable for the scale of the value unlocked and in terms of the thousands of beneficiaries that will benefit from it," she said.
The Dinatla consortium is majority owned by prominent black entrepreneurial businesses and also comprises broad-based black economic empowerment (B-BBEE) companies.
The consortium acquired 15% of The Bidvest Group [JSE:BVT], which amounted to 45 million shares. The arrangement was refinanced three years later when Dinatla reduced its stake to a residual holding of 26.5 million ordinary Bidvest shares.
In a statement released on Sens, the JSE's news service, Bidvest said the transaction gave Dinatla constituents the certainty of early cash realisation and facilitated repayment of Dinatla's funding arrangements well ahead of the settlement date in March 2012.
Value in excess of R2bn had been delivered to Dinatla shareholders since 2003 when the Bidvest-Dinatla relationship was formed.
The buy-back involved the purchase of 12 million Bidvest shares from Dinatla at a net repurchase price of R131.75 per Bidvest ordinary share.
"The transaction is hugely positive for all parties and is further evidence of the tremendous success of our partnership with Dinatla," said Brian Joffe, Bidvest's CEO.
"The share repurchase not only unlocks considerable value for Dinatla, it means our partner's remaining equity in Bidvest is totally unencumbered.
Going forward, the buy-back ensures continued value accretion for all Bidvest shareholders."
The structure of the empowerment transaction with Dinatla had demonstrated its resilience across various market cycles, Joffe said, and added that it achieved the strategic goals set in 2003 of significant and sustained gains for empowerment beneficiaries.
On behalf of the consortium, Tania Slabbert said the unique BEE transaction represented more than R2bn of value realised for Dinatla.
"The transaction is remarkable for the scale of the value unlocked and in terms of the thousands of beneficiaries that will benefit from it," she said.
