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The trust was born out of the approved indigenisation proposal presented to Government by BAT Zimbabwe last year. It also saw the creation of an employee share ownership trust benefiting the company’s workers.
As a result of the transaction, the Tobacco Empowerment Trust now owns 10,74 percent, representing 2,2 million shares, while the workers own 10 percent of BAT Zimbabwe Limited, listed on the Zimbabwe Stock Exchange.
In terms of the agreement, the company will give five percent of its shares equivalent to an employee share ownership trust covering all full-time employees. BAT further offered 1 031 676 of the issued share capital to the ESOT, by way of subscription, representing five percent of its issued share capital.
The ESOT was expected to subscribe for the shares at the ruling price on the ZSE.
Based on yesterday’s price of US720 cents per share, the Tobacco Empowerment Trust is valued at more than US$14,2 million.
At a signing ceremony at his offices in Harare yesterday, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere announced that his permanent secretary Mr George Magosvongwe will chair the board of trustees. Other trustees are Agriculture, Mechanication and Irrigation Development secretary Mr Ngoni Masoka, Gender and Women’s Affairs secretary Dr Sylvia Utete-Masango, Boka Tobacco Tobacco Floors chief executive Ms Rudo Boka, Zimbabwe Youth Council director Mr Livingstone Dzikira, tobacco farmer Mrs Charity Bimha, director of indigenisation Mr Godfrey Sigobodla and Retired Colonel Marima Hunga.
There are also three nominees from BAT Zimbabwe Limited: managing director Mr Lovemore Manatsa, head of leaf operations Mr Patrick Rose and finance director Mr Richard Morgan.
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Gender and Women’s Affairs Minister Dr Olivia Muchena, who was present at the signing ceremony presided over by Harare lawyer Mr James Mutizwa, said women and the youth were the beneficiaries of the empowerment initiative.
“I would like to thank the minister (Kasukuwere) for moving the process in a transparent manner ever since we launched the trust. A lot of people were wondering what this is all about and I am glad that it has come out clearly that this trust will benefit the women and the youth in this country. When you look at the tobacco industry today, the dominance of women is evident, where they are in charge at the floors, the tobacco association, the growers and even research, she said.
In terms of the deed of trust, it is expected that the activities of the trust will be involved in tobacco-related development programmes in tobacco growing areas with special emphasis on the women, the youth and other disadvantaged communities.
Before submission of the indigenisation plan, BAT Zimbabwe was owned 57 percent by BAT International. Other significant shareholders in the listed firm include Old Mutual, with a 17 percent equity.
According to the agreed phased indigenisation plan, BAT Zimbabwe will be 36 percent compliant by October 2013, 46 percent by October 2014 and fully compliant (51 percent) by 2015.
Online Reporter