Listed paper manufacturer Sappi intends to sell about 4,5% of its issued share capital to black investors, the company said on Wednesday.
The total value of the transaction would amount to R814-million and would mean that 30% of Sappi’s South African business would be under black empowerment ownership.
The deal would include Sappi’s staff and investment groups.
“Sappi views broad-based black economic empowerment [BBBEE] as a key requirement for sustainable growth and social development in South Africa,” Sappi CEO Ralph Boëttger said in a statement.
The transaction did not negatively affect Sappi’s current financing structure and credit facilities, he said.
Jan Labuschagne, Sappi CEO for Southern Africa, said the transaction would help attract and retain staff, in particular highly skilled black managers.
He said the deal reinforced Sappi’s position as “a responsible corporate citizen within the communities where we operate”. — Sapa