Shareholders in South African construction group Murray & Roberts on Monday voted in favour of the company proceeding with the implementation of its broad-based black economic empowerment (BEE) transaction.
At both the general meeting of shareholders and the scheme meeting convened by an order of the high court of South Africa, shareholders voted in favour of the transaction to buy back 10% of the issued share capital — about 33,2-million shares — from shareholders for a total consideration of almost R500-million.
The chairperson of the scheme meeting will report back to the high court on November 29 and the transaction will become effective on December 19.
Commenting on the transaction, group chief executive Brian Bruce said: “We are pleased that shareholders have supported our empowerment strategy. This is as important a milestone for our company and its people as any we have crossed in our long history spanning more than 100 years in South Africa.
“We have utilised the capacity of our strong balance sheet efficiently so as to create a new experience of ownership and participation for the majority of our people.”
Following the transaction, approximately 14 000 qualifying employees in the South African operations of Murray & Roberts will receive a grant of 300 shares each, valued at almost R6 000 at current market pricing. The remaining shares will be used to establish an employee benefit trust, a black executive share trust and a broad-based community trust.
Bruce said the group has commissioned a comprehensive communication programme to engage all its employees and middle management on the substance and effect of the transaction.
“It is our wish that employees retain their shares after the five-year moratorium. We are facing the potential of sustainable real growth in our industry for the first time in almost three decades.
“We therefore see these shares as an investment in the South African construction industry rather than in Murray & Roberts alone,” he concluded. — I-Net Bridge