State-owned finance group the Industrial Development Corporation (IDC) has offered part of its 85% stake in phosphate producer Foskor to black investors, the IDC said on Friday.
”The facilitation of broad-based black economic empowerment (BEE) and increasing economic participation is at the heart of the IDC’s mandate,” IDC chief executive Geoffrey Qhena said.
”This process represents the appropriate redistribution of Foskor’s contribution to the South African economy.”
Foskor and the IDC said in a joint statement that they had launched a ”request for proposal” process, seeking expressions of interest from black investors to acquire part of the IDC’s stake.
”Transformation is a strategic imperative for the IDC and Foskor, and in line with the provisions of [legislation including the] Broad-Based Black Economic Empowerment Act … they intend to transfer shares owned by the IDC, representing up to 26% of Foskor’s share capital, to black people,” the statement said.
A broad range of black groups would be introduced through the BEE process, including strategic business partners, women, people with disabilities, special interest groups, communities (particularly those in the immediate vicinity of Foskor’s operations at Phalaborwa and Richards Bay) and employees. — Sapa