The Nedbank Group said this week that its broad-based black economic empowerment (BBBEE) transaction had created value of R8.2-billion based on prevailing market prices for all of Nedbank Group’s South African BEE stakeholders.
Beneficiaries of the Nedbank Eyethu Share Scheme, which was launched in 2005, include Black Business Partners (BBPs), employees, non-executive directors, clients and community interest groups affiliated to Nedbank.
The BBP element, which involved the Women Investment Portfolio Holdings Limited (Wiphold) Consortium and the Brimstone-Mtha-we-Mpumelelo Consortium, created a combined R1.6-billion in value. The Nedbank Eyethu Share Scheme transaction included more than 500000 direct and indirect beneficiaries and facilitated broad-based black ownership to the value of 11.5% of Nedbank’s South African businesses at the time.
Nedbank chief executive Mike Brown said: “This is a proud moment for us and all the partners who have walked alongside us on this transformation journey. With this transaction, we set out to create sustainable value for a broad base of diverse beneficiaries, by issuing Nedbank ordinary shares to our strategic black business partners.”
The scheme was designed in conjunction with the other South African subsidiaries of Old Mutual plc. Old Mutual South Africa and Mutual & Federal also implemented BEE transactions, based on the same principles and with the same BBPs.
“This has been an innovative empowerment structure within the financial services sector.
“All the partners agree the relationship has been one of mutual
engagement and benefit and, even though the contractual agreements have matured, the strategic and commercial partnerships built over the years will continue,” said Brown.
Wiphold founder and CEO of Wipcapital Gloria Serobe described the partnership between Nedbank and Wiphold as pioneering.
“When the deal was announced, it was the first transaction to include women as primary beneficiaries, signalling major progress towards increased involvement of women in the economy.
“The relationship has matured and has been rich with challenge, debate and shared values,” said Serobe.
Co-founder and CEO of Brimstone Investment Corporation Mustaq Brey said the deal had achieved “superior” returns for the company.
“The experience with Nedbank has been very positive ... and rewarding for Brimstone and its consortium partner Mtha-we-Mpumelelo. Brimstone’s aim is to be profitable, empowering and to have a positive social impact and we believe that the BEE deal with Nedbank has delivered for us in this regard, achieving a significantly superior return for our shareholders for the initial capital we invested in 2005”.
Nedbank BBBEE deal huge success
Beneficiaries of the Nedbank Eyethu Share Scheme, which was launched in 2005, include Black Business Partners (BBPs), employees, non-executive directors, clients and community interest groups affiliated to Nedbank.
The BBP element, which involved the Women Investment Portfolio Holdings Limited (Wiphold) Consortium and the Brimstone-Mtha-we-Mpumelelo Consortium, created a combined R1.6-billion in value. The Nedbank Eyethu Share Scheme transaction included more than 500000 direct and indirect beneficiaries and facilitated broad-based black ownership to the value of 11.5% of Nedbank’s South African businesses at the time.
Nedbank chief executive Mike Brown said: “This is a proud moment for us and all the partners who have walked alongside us on this transformation journey. With this transaction, we set out to create sustainable value for a broad base of diverse beneficiaries, by issuing Nedbank ordinary shares to our strategic black business partners.”
The scheme was designed in conjunction with the other South African subsidiaries of Old Mutual plc. Old Mutual South Africa and Mutual & Federal also implemented BEE transactions, based on the same principles and with the same BBPs.
“This has been an innovative empowerment structure within the financial services sector.
“All the partners agree the relationship has been one of mutual
engagement and benefit and, even though the contractual agreements have matured, the strategic and commercial partnerships built over the years will continue,” said Brown.
Wiphold founder and CEO of Wipcapital Gloria Serobe described the partnership between Nedbank and Wiphold as pioneering.
“When the deal was announced, it was the first transaction to include women as primary beneficiaries, signalling major progress towards increased involvement of women in the economy.
“The relationship has matured and has been rich with challenge, debate and shared values,” said Serobe.
Co-founder and CEO of Brimstone Investment Corporation Mustaq Brey said the deal had achieved “superior” returns for the company.
“The experience with Nedbank has been very positive ... and rewarding for Brimstone and its consortium partner Mtha-we-Mpumelelo. Brimstone’s aim is to be profitable, empowering and to have a positive social impact and we believe that the BEE deal with Nedbank has delivered for us in this regard, achieving a significantly superior return for our shareholders for the initial capital we invested in 2005”.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos