• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

Loading...
See More

Controversial Amsa BEE deal canned

Sep 26 2011 18:48 I-Net Bridge

Company Data

ARCELORMITTAL SOUTH AFRICA LIMITED [JSE:ACL]

Last traded 20
Change 1
% Change 5
Cumulative volume 97092
Market cap 0

Last Updated: 28-04-2015 at 11:29. Prices are delayed by 15 minutes. Source: McGregor BFA

KUMBA IRON ORE LIMITED [JSE:KIO]

Last traded 173
Change 13
% Change 8
Cumulative volume 919457
Market cap 0

Last Updated: 28-04-2015 at 11:34. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Kumba staff in line for major payout

Num accuses Rio, Anglo of ducking BEE

New BEE property fund makes waves

New varsity BEE course launched

Minister slates sale of BEE shares

Gigaba: BEE 'fronting' a concern

 
Johannesburg - The controversial R9.1bn empowerment deal between ArcelorMittal SA [JSE:ACL] and a firm that includes a son of President Jacob Zuma and the Gupta family has fallen through.

"Shareholders are advised that the parties involved in the BEE (black economic empowerment) transaction have not agreed on an extension for the satisfaction of the conditions precedent and that the subscription and shareholders' agreement has therefore lapsed," Amsa said on Monday.

The BEE transaction was unveiled in August last year and aimed to transfer 26% of Amsa's shares to black investors and staff.

Structured so that all the assets of Amsa would have been transferred into a new company, the deal would have seen 21% of the company held by a special purpose vehicle controlled by the Ayigobi Consortium led by Sandile Zungu and 5% held by an employee share ownership scheme that will benefit about 8 500 Amsa staff members.

Shareholding of the Ayigobi Consortium is in turn held 75% by strategic partners including several of Imperial Crown Trading's (ICT) shareholders as well as Mabengela Investments, which is led by President Jacob Zuma's son Duduzane Zuma.

The deal was highly criticised for targeting those who were politically connected.

At the time Amsa said it planned to acquire ICT for R800m in cash.

ICT's only asset is a 21.4% prospecting right in Kumba Iron Ore's [JSE:KIO] Sishen mine and the awarding of that right is currently being questioned in court. Amsa did not clarify whether this deal had also been scrapped.
arcelormittal sa

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 most expensive cars In the world
10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...