Supergroup

20/08/2012

Super Group announces B-BBEE transaction

Super Group is pleased to announce that it is in the process of restructuring its business operations in order for the South African operations to enter into a ten year Broad-Based Black Economic Empowerment (“B-BBEE”) transaction with its South African black employees.

The restructuring proposed by Super Group is to ring-fence the South African operations, which will comprise of the Supply Chain South Africa, FleetAfrica and Dealerships Divisions, under Super Group Holdings (Pty) Ltd (“SGH”), currently a wholly-owned subsidiary of Super Group. The international operations, comprising African Logistics, Sg fleet (Australia) and Mauritius, will reside under the existing wholly-owned subsidiary registered in Mauritius, Bluefin Investments Limited.

Once the above restructuring is completed, a newly incorporated company, SG Tsogo (RF) (Pty) Ltd (“SGTS”) will acquire 20,04% of the capital of SGH in return for issuing shares to Super Group. Thereafter, SGTS will issue 50,01% of its shares to a black employee trust, being the SG Tsogo Empowerment Trust. This will result in the South African B-BBEE Employees effectively owning 10,04% of the South African operations under SGH (collectively “the B-BBEE Scheme”).

Peter Mountford, Chief Executive Officer of Super Group, commented: “We believe that B-BBEE is a key requirement for the promotion of sustainable economic growth and social development in South Africa. The rationale for implementing the B-BBEE Scheme is for the B-BBEE employees to benefit from the growth and performance of the South African operations. Another consideration for the restructuring and introduction of the B-BBEE Scheme is that Super Group wish to maintain its Level 3 B-BBEE scorecard.”

The cost of implementing the B-BBEE Scheme is approximately R77 million over the ten year transaction period, with a pro forma decline in headline earnings per share for the year ended 30 June 2012 of 2,4 cents per share (1,3 %). Super Group shareholders’ interest will be diluted by an estimated 0,31% to 2,47% over the transaction period.

“As part of the process, we have appointed Dr Enos Banda, an existing Non-executive Director of Super Group, Kamogelo Mmutlana, Chief Executive Officer of FleetAfrica, and Jogie Matlakala, a Super Group Executive in Group IT for the past four years, as additional directors of the SGH Board. Their appointments will be effective once the B-BBEE Scheme has been approved by Super Group’s shareholders at a meeting on or around the 1st of October 2012;” concluded Mountford.

View Press Announcement - English (PDF 838Kb)

View Press Announcement - Afrikaans (PDF 851Kb)