Fin24

Group Five to buy back Mvela stake

2012-10-16 08:46

Johannesburg - Construction company Group Five [JSE:GBF] said on Tuesday it would buy back a roughly 11% stake in it now held by black empowerment partner Mvelaphanda Group, which is looking to sell off its assets.

Group Five said the shares would be then transferred to black empowerment trusts representing its staff and local community in order to preserve its level of black shareholding.

South African companies are required to keep a certain level of black shareholders under a programme designed to right the inequalities of the apartheid era.


Comments
  • marthinus.oosthuizen.7 - 2012-10-16 09:32

    In other words another handout because of BEE.

  • heinrich.swart.3 - 2012-10-16 15:35

    So if BEE partners keep selling for easy money, then the company have to keep giving? Why can't they just keep their credentials.

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