South African information technology company Mustek announced on Tuesday that it is to introduce a black economic empowerment (BEE) shareholder.
Mustek has entered into an agreement with Safika Holdings and Mduduzi Edward Gama in terms of which Safika will acquire up to a maximum shareholding of 25% plus one share of Mustek’s issued ordinary shares from July 1 2003.
The transaction will take place over a five-year period from the commencement date until the fifth anniversary of the date, Mustek said in a statement.
Mustek currently has a number of BEE initiatives in place relating to employment equity, procurement and product distribution channels.
The introduction of BEE equity ownership will further meaningfully improve Mustek’s positioning in relation to its competitors and significantly enhance its potential for improved participation in public and private sector opportunities, thereby providing an enhanced platform for growth, it said.
The acquisition by Safika of up to a maximum of 25% plus one share of the effective number of issued shares in Mustek will be achieved through a mechanism based on the achievement by Mustek of pre-agreed United States dollars Ebitda hurdles over the relevant period.
The implementation of the transaction is subject to approval by Mustek’s shareholders at a general meeting and the attainment of all regulatory and statutory approvals by the appropriate regulatory authorities as required. — I-Net Bridge