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Value Group in empowerment deal

Johannesburg – Value Group [JSE:VLE] announced on Thursdayit intended to facilitate an empowerment deal which involved a company linked to Mathews Phosa, a non-executive director of the supply chain and logistics group and also treasury-general of the ANC.

In terms of this proposed deal, the company will issue new shares that will give new empowerment partners a shareholding of 15% in the group.

Empowerment partners in the deal also include the company's employees and Diplobuzz Investments (Pty) Ltd, an entity associated with Mano Padiyachy, who is an executive director of Value Group.

Value Group said it would help facilitate the deal.

According to the proposed offer, Value Group intended to offer 14.6 million shares to Opsiweb Investments, a special purpose vehicle wholly owned by the Nine Miles Trust, the family trust of Phosa.

The company would also offer 6.257 million shares to Diplobuzz Investments, a special purpose vehicle wholly owned by the Padiyachy Family Trust, the family trust of Mano Padiyachy, who is an executive director of Value Group.

Value Group said its subsidiary, Value Logistics Limited, would fund share issues to Phosa and Padiyachy.

The implementation of an employee empowerment scheme would facilitate the empowerment of the group's qualifying black employees by enabling them to acquire an economic interest and voting rights equivalent to up to 5% of Value Group's issued share capital.

Value Group said after considering the possible dilution of existing ordinary shareholders as a result of the BEE transaction, it intended to
make a pro rata voluntary offer to repurchase 9.2% of eligible ordinary shareholders' shares for a cash consideration of R3.60 a share, subject to a maximum of 16.66 million ordinary shares being repurchased in terms of the repurchase offer.

Having taken cognisance of Value Group's solvency levels, cash generating ability and future capital requirements, the board considered it
appropriate to propose the repurchase offer, value group said.

- I-Net Bridge
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