Shareholders of pulp and paper producer Sappi yesterday approved its black economic empowerment transaction announced last month.
The transaction, which involves issuing 24.3million shares, or 4.5% of Sappi's issued share capital, translates into the empowerment of 30% of Sappi's South African business, valued at R814-million.
South African staff and managers will get 77.5% of the transaction, strategic partners Lereko, Malibongwe, and AMB Capital, get a 12.5% stake, and the Sappi Foundation will hold the remaining 10% for the benefit of communities near its mills and plantations.
The South African business will operate as a level-four contributor, concentrating on improving its charter scorecard.
Black-controlled Lereko Investments is headed by Valli Moosa, Popo Molefe and Lulu Gwagwa.
Non-profit NGO Malibongwe Women Development has been in operation since 1989. AMB Capital is an empowered specialist financial services company that helps raise finance for property development projects.
Sappi Southern Africa CEO Jan Labuschagne said: " Approval of this deal gives our employees a broad ownership stake in Sappi SA and a concrete interest in the strong performance of the company over the next decade."
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