/ 15 July 1999

50% of Sappi held offshore

WEDNESDAY, 10.30PM:

SOUTH African pulp and paper manufacturer Sappi on Wednesday announced that more than 50% of its shares are held by foreign investors, exceeding their predictions that the 50% milestone would only be passed next year.

Sappi said that an asset swap of 5-million shares concluded on Tuesday brought the total non-resident shareholding to 25-million shares.

Finance director Bill Hewitt said Sappi’s objective is to have 65% of the shares held by foreigners, a figure that will reflect the geographical split of the group’s operations.

At least half of the group’s 24000-strong workforce in based in Europe and North America and it derives 85% of its sales in foreign currency. This includes $500-million worth of exports from South Africa.