Foskor (Pty) Limited has been certified as a Best Employer South Africa 2012/13.

 

Media

View our press releases and media articles in the press.

Media
IN THIS SECTION


Press releases

IDC and Foskorís BEE deal empowers millions

08 July 2009

State-owned Industrial Development Corporation ("IDC") today announced the successful bidders for a 26% broad-based black economic empowerment stake in vertically integrated phosphate and phosphoric acid producer, Foskor. The IDC and Foskor have chosen a total of 12 consortia, the Manyoro Consortium, which will acquire 15% of Foskor‟s issued share capital. This followed a competitive bidding process, inviting participation from black business consortia and broad-based special interest groups. The remaining 11% is split between two Special Purpose Vehicles (SPV‟s) for staff and local communities. SPV 2 will incorporate a trust for communities in the vicinity of Foskor‟s operations in Phalaborwa and Richards Bay, while SPV 3 will control an employee share ownership scheme for Foskor‟s 2 000 employees. The transaction will have in excess of a million beneficiaries, including women and beneficiaries with disabilities.

To ensure that all interested parties from all parts of South Africa were able to participate, the IDC ran a competitive bidding process and has provided a fully vendor financed funding package for all parties.

IDC CEO, Geoffrey Qhena commented: "The transaction is in line with one of the IDC's core objectives of broadening economic participation and facilitating industry development. The high level of interest from strategic business partners and broad-based groupings highlights the strength of Foskor as a business and the attractiveness of its shares as a BBBEE investment. "

commented: "The transaction is in line with one of the IDC's core objectives of broadening economic participation and facilitating industry development. The high level of interest from strategic business partners and broad-based groupings highlights the strength of Foskor as a business and the attractiveness of its shares as a BBBEE investment. "

Transaction details

If Foskor pursues an IPO in 2009, then the acquisition price will be based on Foskor‟s initial public offering (IPO) price. If Foskor is not listed in 2009, an independent valuation will be undertaken to price the transaction. The IDC will fund the entire consortium. All BBBEE parties are required to make an equity contribution in proportion to their direct stakes.

The Manyoro Consortium, which will own 15% of Foskor, is comprised of six strategic black business partners, led by Makana Energy Consortium (MEC). The Strategic Business Partners will control 67.1% of the consortium, while broad-based special interest groups will acquire the remaining 32.9%. SPV 2, which will own 5% of Foskor, is comprised of the Phalaborwa Community Trust (50%) and the Richards Bay Community Trust (40%), with the balance set aside for other communities to be identified. SPV 3 will own 6% of Foskor and has been set up for the approximately 2 000 Foskor employees. The IDC will remain with 59% ownership of the phosphate producer.

The strategic black business partners are; Makana Energy Consortium (19.3%), RSA Capital (14.2%), Umanyolo Investment Holdings (8.5%), Palama (12.2%), Ufhata Consortium (7.7%) and Mgwali Investments (5.3%). MEC executive chair Peter-Paul Ngwenya will be Chairman of the Manyoro Consortium

The Broad-Based special interest groups represented in Manyoro Consortium are: AWCA Investment, Azara Consortium, Disability Empowerment Concerns, SBR, Phalimpopo and Podwala. Each holds a 5.5% stake in the Manyoro Consortium.

Manyoro Consortium Chairman, Peter-Paul Ngwenya said "We believe we can bring a valuable perspective to Foskor as it continues to face the challenges of transformation. We applaud Foskor and the IDC's efforts on this front to date, and look forward to working with Foskor in its quest to become a truly empowered South African business."

said "We believe we can bring a valuable perspective to Foskor as it continues to face the challenges of transformation. We applaud Foskor and the IDC's efforts on this front to date, and look forward to working with Foskor in its quest to become a truly empowered South African business."

Foskor's CEO, Alfred Pitse said of the transaction: "Foskor is the leading, vertically integrated producer of phosphate fertilisers in South Africa. This attractive market position is convincing proof that our long-term commitment to sustainable and equitable economic development is successful. We are now geared to meet the requirements of the Mineral and Petroleum Resources Development Act of 2002, the Codes of Good Practice and the Codes of Good Practice for the South African Minerals Industry (2009), necessary to obtain our new order mining rights. We welcome all our new partners and stakeholders into the Foskor family.

said of the transaction: "Foskor is the leading, vertically integrated producer of phosphate fertilisers in South Africa. This attractive market position is convincing proof that our long-term commitment to sustainable and equitable economic development is successful. We are now geared to meet the requirements of the Mineral and Petroleum Resources Development Act of 2002, the Codes of Good Practice and the Codes of Good Practice for the South African Minerals Industry (2009), necessary to obtain our new order mining rights. We welcome all our new partners and stakeholders into the Foskor family.

Source: Issued by Brunswick on behalf of the IDC



Previous page