JSE-listed ceramic tiles retailer Italtile on Thursday announced a broad-based black economic empowerment (BEE) transaction that will see 10,7% of the entire issued ordinary share capital of the company in the hands of black-owned entities. The deal is worth in excess of R400-million .
The company’s current brands include Italtile, CTM and Tivoli taps.
The proposed broad-based BEE transaction will involve BEE groupings that comprise various beneficiaries including women groupings as well as Italtile staff.
The strategic BEE groupings include Mafumbuka Investment Holdings, led by Spoornet chief executive Siyabonga Gama, and Aka Capital, led by Nedbank non-executive chairperson and former Eskom non-executive chairperson Dr Ruel Khoza.
Mafumbuka is a 100% black-owned entity made up of a trust, individual shareholders and the Ingcucuce Women’s Organisation, a broad-based women’s group that is involved with HIV/Aids projects and employment-generation initiatives in rural areas.
One of the highlights of the transaction is its unique funding structure. The proposed transaction will be funded by the company in anticipation of the changes to section 38 of the Companies Act that will allow companies to provide financial assistance for the purchase of their own shares.
Announcing the transaction, Italtile CFO Peter Swatton said that the group looked for empowerment partners “who we believe understand our industry and will enhance the group’s ability to enter market segments where it did not enjoy a major presence”.
Swatton added: “This transaction provides Italtile with a fresh insight and ability to harness further different opportunities for the business.” — I-Net Bridge