Previously disadvantaged participants and thousands of Absa employees will benefit as shareholders in the landmark broad-based black economic empowerment (B-BBEE) transaction.
This after the banking group approved the transaction which will be implemented on September 1. It said eligible employees of the financial institution will receive rights to shares once the transaction has been implemented.
The group also said Absa shareholders have voted in favour of the B-BBEE transaction, valued at about R10-billion at recent share price values, paving the way for the implementation of one of the largest BEE transactions in recent times.
At a general meeting held on June 2 following the group’s annual general meeting, shareholders approved resolutions required to give effect to the transaction, including increasing Absa’s authorised share capital.
“We are grateful to our shareholders who are aligned to our long-term vision of empowering our staff and communities,” said Absa Group CEO Arrie Rautenbach.
“Today marks a milestone in the journey to bring this sizeable and impactful transaction to fruition, benefitting employees and communities in a meaningful way.”
The company said the B-BBEE transaction involves 7% of the total Absa shareholding comprising 3% for South African staff and 4% for black participants in selected corporate social investment (CSI) progammes.
On implementation of the transaction, Absa will also allocate shares to a CSI Trust, which will distribute its significant dividend income to its beneficiaries, who will be mainly black participants in CSI programmes that focus on education and youth employability.
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