Exxaro BEE Deal of the Year 2022

The following are those deals shortlisted for the Exxaro BEE Deal of the Year 2022. The DealMakers Independent Panel have selected these transactions from the nominations submitted by the M&A industry advisers. They are, in no particular order:

Old Mutual’s ‘Bula Tsela’ BEE transaction

During the Old Mutual separation process announced in 2018, the company undertook an empowerment commitment to increase its BEE ownership to 30% by June 2023. The disposal of a further 4.36% stake in 2022 in a three-legged process involving employee and community trusts and a retail offer, satisfied this commitment. The R2,8 billion deal involved complex funding options of notional vendor financing to the trusts and actual vendor funding to the retail scheme.

The local advisers to the deal were: Rand Merchant Bank, Tamela, Merrill Lynch, Bowmans, PwC and Deloitte.

Shoprite Checkers’ evergreen B-BBEE transaction

The announced R8,9 billion transaction in May 2022 was the first of its nature in the retail sector – the deal at Shoprite’s subsidiary boosted its B-BBEE ownership to 19.2% from 13.5%. The deal recognises its employees’ role in the success of the group by providing them with additional compensation over and above their salary. The evergreen B-BBEE Employee Benefit Trust will hold 40 million shares in the local subsidiary and employees will receive dividend entitlements but will not own the shares, so the transaction will not have an impact on the shares in issue in the listed holding company. Non-SA employees will also receive equivalent payment to that of its local employees.

The local advisers to the deal were: Rand Merchant Bank and Werksmans.

Seriti Resources’ acquisition of Windlab Africa

The acquisition by Seriti of a major stake in Windlab Australia’s South African and East African wind and solar-powered businesses, marked the transfer of strategically important renewable assets from foreign ownership into the hands of a black energy company. Windlab Africa has developed 230MW of projects currently operating and supplying the SA grid. The 54.2% stake in Windlab Africa for c.R892 million acquired via subsidiary Seriti Green, speaks to its goal of ensuring long term sustainability as a diversified energy producer. Seriti is currently Eskom’s largest black-controlled coal supplier.

The local advisers to the deal were: Standard Bank and White & Case.

Anglo American Platinum’s B-BBEE transaction

The company’s new employee share ownership plan valued at R1,8 billion, announced in September 2022, will issue to employees (SA and Zimbabwe) listed shares valued at R8,000 each year with each tranche vesting three years after allocation, and participation in the evergreen ownership of 2% of Rustenburg Platinum Mines (RPM). The RPM shares will be held into perpetuity on behalf of qualifying employees and shares will be fully funded by Amplats with employees receiving dividends as and when declared.

The local advisers to the deal were: Rand Merchant Bank, Merrill Lynch and Webber Wentzel.

The winner will be announced at the ANSARADA DealMakers Annual Awards on 21 February, 2023 at the Sandton Convention Centre.

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