Absa shareholders gave the go-ahead on Friday for a landmark deal that will see 10% of the banking group’s ownership directly held by black shareholders.
Shareholders approved all ordinary and special resolutions to this end, Absa said in a statement in Johannesburg.
”The Batho Bonke transaction entails the introduction of broad-based black economic empowerment shareholding groupings, led by Tokyo Sexwale, that will subscribe for 10% of Absa’s enlarged share capital.”
Absa said the appointment of Nthobi Angel and Leslie Maasdorp to the group’s board was approved as part of the transaction. Absa Group chairperson Dr Danie Cronje welcomed the deal.
”I am delighted that the shareholders have approved this milestone transaction in the history of the Absa Group and the financial services sector.”
Mvelaphanda Holdings chairperson Tokyo Sexwale said he had been confident that the black empowerment transaction would get the green light.
”We reiterate our position that this transaction, the first of its kind in the financial services sector, remained solid from the outset due to the manner in which it was structured.”
Shareholders gave Absa the nod to issue 73 152 300 new redeemable preference shares at R2.00 each to Batho Bonke for R146 304 600; and up to a maximum of 7 315 200 new redeemable preference shares at R2.00 each to the Absa Employee Trust for up to R14 630 400 cash.
Absa Group chief executive Nallie Bosman said the deal put Absa in line to meet the financial sector charter target of 10% direct ownership.
He added: ”Independent research shows Absa has an indirect black shareholding of between 12% and 14% and this transaction means that the group will comply with the overall ownership requirement of 25% to a large degree.” ‒ Sapa