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THERE WAS MUCH director activity about N shares over the past week. Recently appointed chief information officer at Brimstone Investment Corporation [JSE:BRT] and former House of Monatic (Brimstone’s clothing division) CEO Mohamed Iqbal Khan exercised N share options granted through the Brimstone Investment Corporation Share Trust. He exercised 50 000 Brimstone N shares at a strike price of 730c/share, pocketing R365 000.
The transaction clearly excludes Life Healthcare Group Holdings [JSE:LHC] shares allocated to Brimstone’s shareholders in June this year after the unbundling and subsequent listing of the company on the JSE. Brimstone’s shareholders received Life Healthcare shares in the ratio of 40 Health shares for every 100 Brimstone shares owned, as shown in the share register on Friday 20 August (the record date). Khan sold his 50 000 Brimstone N shares (excluding the Health portion) at 520c/share.
In an attempt to incentivise black participation, Brimstone’s board of directors proposed the specific issue of 39 140 000 new Brimstone N shares for cash to the participants, representing in aggregate 12,5% of Brimstone’s enlarged issued share capital in order to retain, attract, incentivise and align the interests of a new generation of executive management (excluding the current board) (“second-tier management”) and other employees, the majority of whom are blacks, with those of Brimstone’s shareholders.
Brimstone directors Mpho Ndebele and Nazeem Khan took up 2 554 and 32 549 shares respectively at 1253c/share in the capitalisation awards programme via the BEE Management Trust, amounting to R439 841.
The BEE Management Trust is one of three trusts set aside for black employees and is an executive equity investment scheme established for the benefit of second-tier management, who will hold 11,2% of Brimstone’s enlarged issued share capital – being 35 140 000 Brimstone N shares. It’s envisaged that at the inception of the transactions 55,8% of the units in the BEE Management Trust will be allocated to current second-tier management, with the remaining 44,2% warehoused by Brimstone for future allocation to new and existing second-tier management and management of the Brimstone group. At inception, 77,9% of the units in the BEE Management Trust will be held by blacks (including the units warehoused by Brimstone).
The third N share transaction for the week was by Basil Sgourdos, group chief financial officer at MIH, a major subsidiary of Naspers (owner of Finweek). Sgourdos sold 10 453 Naspers N shares at R389,99/share amounting to R3 821 787, which were vested shares held in the Naspers and MIH Holdings Share Incentive Trusts.
Lastly – and not N related – it was stated in the circular issued to NEPI shareholders on 29 November, relating to a rights offer to NEPI shareholders of a total of 15m new NEPI shares at an issue price of 2600c/share for shareholders on the SA share register or €2,67/share for shareholders on the British share register that Martin Slabbert and Victor Semionov intended to follow 225 900 and 7 500 of their total rights respectively.
Shareholders were advised Slabbert and Semionov intend following 59 091 and 15 950 additional rights respectively and – in order to finance their additional take-up – have sold a portion of their total rights. Slabbert sold 602 932 NEP shares at 203c/share amounting to R1 224 555, while Semionov sold 201 000 shares over two days at 209c/share for R416 904.
Other directors Des de Beer and Jeffrey Zidel bought their rights on the open market at 200c/share. De Beer and Zidel bought 100 000 and 30 000 NEP shares amounting to R200 000 and R60 000 respectively.
The transaction clearly excludes Life Healthcare Group Holdings [JSE:LHC] shares allocated to Brimstone’s shareholders in June this year after the unbundling and subsequent listing of the company on the JSE. Brimstone’s shareholders received Life Healthcare shares in the ratio of 40 Health shares for every 100 Brimstone shares owned, as shown in the share register on Friday 20 August (the record date). Khan sold his 50 000 Brimstone N shares (excluding the Health portion) at 520c/share.
In an attempt to incentivise black participation, Brimstone’s board of directors proposed the specific issue of 39 140 000 new Brimstone N shares for cash to the participants, representing in aggregate 12,5% of Brimstone’s enlarged issued share capital in order to retain, attract, incentivise and align the interests of a new generation of executive management (excluding the current board) (“second-tier management”) and other employees, the majority of whom are blacks, with those of Brimstone’s shareholders.
Brimstone directors Mpho Ndebele and Nazeem Khan took up 2 554 and 32 549 shares respectively at 1253c/share in the capitalisation awards programme via the BEE Management Trust, amounting to R439 841.
The BEE Management Trust is one of three trusts set aside for black employees and is an executive equity investment scheme established for the benefit of second-tier management, who will hold 11,2% of Brimstone’s enlarged issued share capital – being 35 140 000 Brimstone N shares. It’s envisaged that at the inception of the transactions 55,8% of the units in the BEE Management Trust will be allocated to current second-tier management, with the remaining 44,2% warehoused by Brimstone for future allocation to new and existing second-tier management and management of the Brimstone group. At inception, 77,9% of the units in the BEE Management Trust will be held by blacks (including the units warehoused by Brimstone).
The third N share transaction for the week was by Basil Sgourdos, group chief financial officer at MIH, a major subsidiary of Naspers (owner of Finweek). Sgourdos sold 10 453 Naspers N shares at R389,99/share amounting to R3 821 787, which were vested shares held in the Naspers and MIH Holdings Share Incentive Trusts.
Lastly – and not N related – it was stated in the circular issued to NEPI shareholders on 29 November, relating to a rights offer to NEPI shareholders of a total of 15m new NEPI shares at an issue price of 2600c/share for shareholders on the SA share register or €2,67/share for shareholders on the British share register that Martin Slabbert and Victor Semionov intended to follow 225 900 and 7 500 of their total rights respectively.
Shareholders were advised Slabbert and Semionov intend following 59 091 and 15 950 additional rights respectively and – in order to finance their additional take-up – have sold a portion of their total rights. Slabbert sold 602 932 NEP shares at 203c/share amounting to R1 224 555, while Semionov sold 201 000 shares over two days at 209c/share for R416 904.
Other directors Des de Beer and Jeffrey Zidel bought their rights on the open market at 200c/share. De Beer and Zidel bought 100 000 and 30 000 NEP shares amounting to R200 000 and R60 000 respectively.
