ArcelorMittal SA does a new empowerment deal - without the Guptas
The shareholders of ArcelorMittal SA, the country’s biggest steel maker, voted 99.9% in favour of the company’s R2.2bn broad-based black economic empowerment transaction on Friday. This is a positive step for SA’s beleaguered steel industry and a far cry from the value destruction wrought on the company by an earlier and failed empowerment transaction involving interests linked to the Guptas. The deal signed in September with Likamva Resources, a 100% black-owned and 58% black woman-owned company, whose principal members are active in the industrial, mining and banking sectors, will see Likamva initially hold a 17% stake in ArcelorMittal SA. The newly established ArcelorMittal SA Employee Empowerment Share Trust will also buy a 5.1% stake in the company through notionally funded shares worth about R525m and issued by ArcelorMittal SA. The new employee share scheme is in addition to the existing Ikageng Employee Share Option Scheme, which was introduced in 2015. Wim de Klerk, Arcelor...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.