Fin24

BAT Zim approves indigenisation plan

2012-10-26 13:47

Harare - British American Tobacco (BAT) Zimbabwe shareholders unanimously approved its indigenisation proposal at an extraordinary general meeting held on Friday morning. This means that 26% of the shareholding will be transferred to indigenous investors.

Under the new shareholding structure, 10.74% will go to a corporate social investment trust that will focus on the development and support of indigenous tobacco growers, 10% to the employee share trust for the benefit of permanent BAT Zimbabwe employees, while the remaining 5.26% will be retained by existing indigenous shareholders.

The authorised share capital increased to US$20.63m from $17.38m.

The indigenisation thresholds applicable to the manufacturing sector were gazetted in General Notice 459 of 2011. This requires companies in the manufacturing sector to comply with indigenisation as follows:

• Within the first year, 26% shareholding is required to be held by indigenous Zimbabweans by October 28 2012;

• Within the second year, 36% shareholding is required to be held by indigenous Zimbabweans by October 28 2013;

• Within the third year, 46% shareholding is required to be held by indigenous Zimbabweans by October 28 2014; and

• Within the fourth year, 51% shareholding is required to be held by indigenous Zimbabweans by October 28 2015.

The group said it will continue to work with the ministry as well as the National Indigenisation and Economic Empowerment Board on the indigenisation requirements.

BAT Plc will donate $3m to the employee share trust, translating to $20 000 per employee.

 - Fin24
 

Comments
  • rasthami.m1 - 2012-10-26 14:06

    South africa can learn a lot from zimbwabwe ,Cancel BEE then introduce indigenisation ...big ups Bob

      richard.bosmano - 2012-10-26 14:42

      Oh yes. RSA can learn to destroy it's economy to the point where we must beg the west for money for our elections. Very clever. Better yet , repeal all race based laws fullstop. How is bee different to some apartheid practices?

      nicky.saaiman.1 - 2012-10-26 16:06

      Rather stay with bee. But every black person can only be a bee partner once and say for five years then another one must get a chance. And any black person having more than say a million rand property or what ever can not be a bee partner.

  • shaunpatrickdaly - 2012-10-26 15:02

    Its a sad state of affairs when people look at new forms of theft as a sort of victory, especially when this amounts to giving a pint of blood to a moldy skeleton.

      johann.enslin.9 - 2012-10-26 15:34

      Theft it is.

  • Sammy Willow - 2012-10-26 15:16

    really like zim begging the west for money, sure good comparison

  • renofinch - 2012-10-26 15:32

    In theory this actually sounds quite reasonable but I would be interested to understand the make up of these so called indeginous share holders. My guess is it's a bunch of wealthy connected individuals that will just get richer and the real issue of wealth division will not change. Re-distrubuting wealth in Africa is purely an excuse to steal somebody else's hard work under the cover of "race" & "colonisation". The guys implementing these policies couldn't give 2 hoots about the people. Sadly the people just don't get it.

  • christi.roestorff - 2012-10-26 15:50

    Clearly BAT is expecting a drop in tobacco consumption and are merely looking for a way to validate a profit loss so as to legitimately write it off against tax!

  • ziso.maziso - 2012-11-29 10:32

    Who cares about some pathetic ignorant comments! the relaity is that Zimbabwe will keep moving forward and creating a bluprint for the economic emancipation of masses. Meanwhile South Africa is like a volcano about to erupt...tic toc tic toc...seconds from disaster!! Read the signs!

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