/ 26 January 2005

Coronation announces BEE funding

Coronation Fund Managers (Coronation) has secured third-party funding for its broad-based black economic empowerment (BEE) staff transaction with the Imvula Trust, the group announced on Wednesday.

Arising from the transaction, the company is proposing a distribution of 25 cents per Coronation share to shareholders, comprising a return of share premium of 24 cents per share and a dividend of one cent per share.

The distribution is subject to shareholder approval.

As it announced in November 2004, the Imvula Trust, which is made up of Coronation’s previously disadvantaged staff, will acquire 10% of the holding company of Coronation’s South African and international operating subsidiaries, Coronation Investment Management (CIM), which is wholly owned by Coronation.

A company owned by Imvula Trust, Imvula Capital, will raise R147-million through the issue of preference shares to a third-party financier.

“Imvula Capital will advance the funds to the Imvula Trust, which will acquire 10% of CIM’s ordinary share capital,” explained CEO Thys du Toit. “The acquisition consideration corresponds to a Coronation listed share price of 385 cents per share and the effective date of the transaction was December 31 2004.”

The trust’s board of trustees comprises two independent trustees, Kabelo Dlothi and Taswell Papier, as well as Thys du Toit.

“The final selection of the beneficiaries of the Imvula Trust and the allocations to those beneficiaries will be determined by the board of trustees, based on recommendations from Coronation’s board of directors,” added Du Toit.

In making allocations to Coronation’s black staff, account will be taken of the management bands as envisaged in the Financial Sector Charter. At the date on which the transaction became effective, permanent black staff members constituted 51 individuals (45% of the total staff complement), of whom 57% were females and 43% males.

Du Toit said the Imvula Trust comprises individuals who are core to Coronation and who will increasingly shape the future of the business.

“It allows for active, sustainable and meaningful economic participation in Coronation’s business activities, management and strategic direction. The Imvula Trust will be an important part of the transformation process within Coronation and should play a significant role in the company’s ability to retain high-quality black professionals.”

The implementation of the transaction in respect of Coronation’s international subsidiaries remains subject to approvals from the relevant regulatory authorities, namely the Financial Services Authority in the United Kingdom and the Irish Financial Services Regulatory Authority in Ireland. — I-Net Bridge