BL Premium reports that Capitec shareholders have overwhelmingly approved a revised broad-based BEE (B-BBEE) transaction for staff that will see the bank issue R1bn in new shares for purchase by qualifying permanent employees from previously disadvantaged backgrounds.
The Stellenbosch-based lender said on Tuesday that shareholders representing 99.9% of the total number of shares held by representatives present at a general meeting held that same day voted in favour of the revised B-BBEE deal. Capitec first announced its planned staff B-BBEE deal on 19 January, but followed that up with a stock exchange filing on Monday that set out a revised transaction structure that was at least partly aimed at reducing the tax liability of employees who took up the share offer. While Capitec had initially wanted to issue the R1bn in new shares at a 50% discount and allow staff to fund the purchase of those shares via loans it would provide, it said on Monday it would now issue the shares at their full price and fund half their value at its own cost. Under the adjusted transaction structure 480,561 new shares will be issued to staff at Tuesday’s opening price of R2,080.90 per Capitec share. Participating employees will be required to fund half the value of the shares they take up with a Capitec loan while the remaining 50% will be settled by the bank. The staff B-BBEE deal is open to all previously disadvantaged staff who were employed by Capitec before 1 January 2019 and who still work for the bank permanently. The new transaction structure still has a five-year lock-in period during which employees will not be allowed to sell the stock.
- Read the full original of the report in the above regard by Garth Theunissen at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page