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Johannesburg - Diversified resources company Exxaro Resources [JSE:EXX] on Wednesday said shares in its Mpower employee share scheme were sold for about R1bn, which meant that close to 10 000 employees would be receiving about R135 000 each later this month.
This is the second time in as many months that a mining company has dished out cash to members of its employee share scheme.
Late in November Kumba Iron Ore [JSE:KIO], the world's fourth-largest iron ore producer, said employees who had participated for the full first five years of its Envision scheme would receive R576 045 each.
Like Kumba, Exxaro's Mpower payouts come as the scheme reached maturity at the end of a five-year capital appreciation period.
When Exxaro was formed in November 2006 following the unbundling of Kumba Resources, Mpower was created as part of the group's commitment to black economic empowerment ownership of the group.
"We formed Mpower to empower previously disadvantaged employees by sharing the group's profits with them, and the scheme has proven to have been an excellent vehicle to do just that," said Exxaro CEO Sipho Nkosi.
Mpower held about 3% of Exxaro's shares with each of the 9 694 beneficiaries assigned units notionally linked to the shares held by the scheme.
The shares held by Mpower were sold last Thursday and generated about R1bn for distribution among the beneficiaries.
The amount each beneficiary will receive varies, depending on the number of units assigned based on the length of Mpower membership.
A beneficiary who has held shares for the full five-year period will receive about R135 000 before tax and realisation costs.
"Mpower beneficiaries have already benefited from the robust growth in the Exxaro share price which has trebled since November 2006. In addition to the payouts to be made this month, Mpower has paid a total of R81.5m, representing some R9 210 per beneficiary, in dividends," the company said.
Beneficiaries comprise a range of Exxaro employees up to lower management level.
Exxaro said it planned to launch a new share scheme to replace Mpower in 2012.
This is the second time in as many months that a mining company has dished out cash to members of its employee share scheme.
Late in November Kumba Iron Ore [JSE:KIO], the world's fourth-largest iron ore producer, said employees who had participated for the full first five years of its Envision scheme would receive R576 045 each.
Like Kumba, Exxaro's Mpower payouts come as the scheme reached maturity at the end of a five-year capital appreciation period.
When Exxaro was formed in November 2006 following the unbundling of Kumba Resources, Mpower was created as part of the group's commitment to black economic empowerment ownership of the group.
"We formed Mpower to empower previously disadvantaged employees by sharing the group's profits with them, and the scheme has proven to have been an excellent vehicle to do just that," said Exxaro CEO Sipho Nkosi.
Mpower held about 3% of Exxaro's shares with each of the 9 694 beneficiaries assigned units notionally linked to the shares held by the scheme.
The shares held by Mpower were sold last Thursday and generated about R1bn for distribution among the beneficiaries.
The amount each beneficiary will receive varies, depending on the number of units assigned based on the length of Mpower membership.
A beneficiary who has held shares for the full five-year period will receive about R135 000 before tax and realisation costs.
"Mpower beneficiaries have already benefited from the robust growth in the Exxaro share price which has trebled since November 2006. In addition to the payouts to be made this month, Mpower has paid a total of R81.5m, representing some R9 210 per beneficiary, in dividends," the company said.
Beneficiaries comprise a range of Exxaro employees up to lower management level.
Exxaro said it planned to launch a new share scheme to replace Mpower in 2012.
