IMVULA Education Empowerment Fund Trust has concluded its first investment in a JSE-listed company through its BroadBased Black Economic Empowerment (B-BBEE) agreement with Ellies Holdings.
The transaction will see Imvula invest R18.5 million of its capital to acquire more than 185 million ordinary Ellies shares at 10 cents a share, representing a 23 percent stake in the company.
In addition, unlike other B-BBEE agreements, Imvula’s share purchase did not attract any discount to the prevailing market price at the time of closing the deal, it includes a 10-year lock-in, and is paid for in cash.
The deal would result in a material improvement in Ellies’ empowerment credentials to a Level 4 B-BBEE status and the ability to fund expansion programmes in line with its strategy through the capital injection.
Imvula would benefit from the potential returns on its equity investment and partner with Ellies on socio-economic development programmes in communities where Imvula was active.
Imvula was founded in 2009 by Dr Taddy Blecher as a B-BBEE development trust to support the youth beneficiaries of the Maharishi Invincibility Institute (MI).
MI aims to provide talented but historically disadvantaged black youth with access to quality tertiary vocational education and a holistic structure to support their education and developmental needs.
This was provided through access to quality education, self-development, industry qualifications, nutritional support, mentorship, work experience and job placement with Accenture, Absa, Bryte and Manpower. Since inception, the programmes has placed more than 19 000 people.
Imvula and its trusts have equity agreements with 23 entities, including Fleishman Hillard, Manpower Group SA, Bryte SA, Nahana Group, Experian-Compuscan, Opentext and Instinctif Partners SA.
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