Following the announcement of a broad based black economic empowerment (BBBEE) transaction on 24 March 2010, Sappi Limited, the global pulp and paper group, announced that the deal has been approved by shareholders at an extraordinary general meeting held in Johannesburg recently.
The transaction, which involves issuing approximately 4,5% (24,3 million shares) of Sappi Limited’s issued share capital, translates into the empowerment of 30% of Sappi’s South African business, valued at R814 million. Sappi’s qualifying South African employees and management will receive 77.5% of the transaction, while Lereko, Malibongwe and AMB Capital, who are Sappi’s Strategic partners in the transaction, will hold a 12.5% stake and the Sappi Foundation will hold the remaining 10% stake for the benefit of communities where the South African business operates mills and plantations.
"Sappi recognises the crucial role that broad based black economic empowerment plays in the growth and development of South Africa and is delighted that shareholders have given the go ahead for this transaction," said group CEO Ralph Boëttger.
