adminshareholders unanimously endorsed the plan that will result in the British-owned cigarette manufacturer releasing a 51 percent stake to locals by 2015.
An elated BAT Zimbabwe managing director Mr Lovemore Manatsa said the approval demonstrates the strong support of the shareholders for this important process.
“This is evidence of shareholder confidence that the business will continue to generate shared value. We endeavour to continue to run the business in a responsible and profitable manner, and it is important to understand that our context is based on the sustainability of our business and for all investors and stakeholders, including the people and country within which we operate,” said Mr Manatsa.
The Zimbabwe Stock Exchange-listed company’s four-year indigenisation plan was approved by the Ministry of Youth Development, Indigenisation and Empowerment earlier this month. The transaction details show that 26 percent of BAT Zimbabwe shareholding will be in the hands of indigenous shareholders by October 28 2012.
This will be structured to incorporate a 10,7 percent stake to a corporate social investment trust, 10 percent to an employee share trust and another 5 percent to be retained by existing indigenous shareholders.
BAT Zimbabwe’s plan is in line with the indigenisation thresholds applicable to the manufacturing sector, requiring companies to comply with the Indigenisation Regulations gazetted in General Notice 459 of 2011.
The terms are that:
l Within the first year, 26 percent shareholding is required to be held by indigenous Zimbabweans by October 28 2012;
l The second year, 36 percent shareholding is required to be held by indigenous Zimbabweans by October 28 2013;
l The third year, 46 percent shareholding is required to be held by indigenous Zimbabweans by October 28 2014; and
l The fourth year, 51 percent shareholding is required to be held by indigenous Zimbabweans by October 28 2015.
BAT Zimbabwe employs over 170 workers who are set to benefit from the employee share scheme while a community trust will benefit tobacco-related developmental programmes. The company has also offered to provide loan facilities to the trusts. The loan amount will be determined by the value of transaction at the applicable selling price, plus registration and administration costs at an interest rate of 8 percent per annum.
“Empowerment is embedded within the way we operate at BAT Zimbabwe, and we have in place a number of initiatives aimed at benefiting indigenous Zimbabweans as our empowerment journey continues,” said Mr Manatsa.
Other big companies that have complied with the indigenisation law include platinum miner Zimplats, Mimosa, Unki Platinum, Old Mutual, PPC and Meikles Africa Limited.
Online Reporter