Johannesburg - ArcelorMittal South Africa’s (Amsa) shareholders voted overwhelmingly in favour of its R2.2 billion empowerment deal with Likamva Resources, the company said on Friday.
The deal was a step taken by Amsa to transform and to improve its relationship with the government on which it heavily relied to keep the steel industry afloat. Amsa, which signed the deal in September, was slapped with a R1.5bn fine by the Competition Commission for price fixing.
The company said 99.9 percent of shareholders voted in favour of the deal led by Likamva that was founded by Noluthando Gosa, a former National Planning Commission member; Leslie Maasdorp, a former Department of Public Enterprises director-general; Warren Wheatley, the chief investment officer of TSS Capital; and former Amsa spokesman Themba Hlengani.
Amsa chief executive Wim De Klerk said the deal would open doors for the company.
“We are pleased that our shareholders have voted in favour of our broad-based black economic empowerment (BBBEE) transaction, which will help us advance our transformation objectives and contribute to the government’s ambition to create black industrialists.
“The fact that our employees and, at a later stage, the communities in which we operate, stand to benefit through their participation in this transaction means that it is truly broad-based and inclusive, which is important for the development and strengthening of the local steel industry,” he said.
Likamva Resources chairwoman, Gosa, said the overwhelming vote was an indication that when stakeholders worked together they were able to deliver significant value to the business and the industry.
“We are encouraged that a journey which started a little over a year ago has been concluded. We are, however, aware of the amount of work which is ahead of us, but we are in this for the long haul and are confident that the principals within Likamva can make a significant contribution in strategic areas of the business.”
Likamva is a 100 percent black-owned and 58 percent black women-owned company, whose principal members are active in the industrial, mining and banking sectors.
Find partners
The deal will see Likamva initially hold a 17 percent stake in Amsa through notionally funded shares issued by Amsa to the value of R1.75bn.
Likamva have a maximum of two years, in which to find partners to make the deal broad-based, including Saldanha and Vanderbijlpark communities where Amsa operates. Likamva’s shareholding will be reduced to 12 percent and the broad-based party will hold 5 percent.
The newly established Amsa Employee Empowerment Share Trust will acquire a 5.1 percent shareholding in the company through notionally funded shares to be issued by Amsa to the value of approximately R525 million.
This new employee share scheme was in addition to the existing Ikageng Employee Share Option Scheme, which was introduced in last year.
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