/ 15 March 2006

Listed firms just 7% black-owned

Black ownership of companies trading on the JSE remained at only 7%, Business Report said on Wednesday.

It quoted the BusinessMap Foundation as saying this figure was about 18% points off the government’s 2014 ownership target of 25%.

Presenting its report on black economic empowerment (BEE) in 2005, foundation research director Colin Reddy said its estimates indicated 10% of listed companies were owned by BEE firms.

However, given that most of these companies were only 50%-owned directly by black individuals, this meant there was direct black ownership of listed companies of around five percent, Reddy said.

When BEE deals where companies had not disclosed values were included, BusinessMap estimated this would rise further to 5,5%, and when the value of unbundled assets which found themselves in black hands was included it rose to seven percent, Reddy said.

BusinessMap said the momentum of BEE deals took a dip in 2005 with R55-billion worth of deals recorded compared with R62-billion in 2004.

However, the number of BEE deals increased to 350 last year compared with 250 in 2004.

In 2004, there were several very large deals, whereas in 2005 there had been many more deals but with lower average rand value, he said.

He added that BEE deal activity was on the increase.

”We are likely to see BEE deals passing 2005’s mark of 350 this year, but in terms of value we are likely to see a decrease or some stability,” Reddy said. – Sapa