| Thu 17 Apr 2008, 12:47 | | YRK - York Timbers Increases BEE Shareholding |
|
YRK
YRK
YRK - York Timbers Increases BEE Shareholding
The York Timber Organisation Limited
(Registration number 1916/004890/06)
Share code: YRK
ISIN: ZAE000008108
YORK TIMBERS INCREASES BEE SHAREHOLDING
The BEE shareholding of the York Timber Organisation (York) has been increased
to 39%, as a result of the Lereko Metier Capital Growth Fund`s interest in the
company having increased from 4% to 14.1%.
This follows a strategic sale and purchase of shares in the company by two of
its existing shareholders.
In a transaction worth R201.3 million, Blackstar Investors Plc, represented by
Andrew Bonamour as a non-executive director on York`s board, sold 8 million
ordinary shares in the company at R25.17 a share. The shares were acquired at
R25.17 a share by Lereko Metier Capital Growth Fund (Lereko Metier), which is
represented by Paul Botha as a non-executive director on York`s board.
Commenting on the transaction, York CEO Lance Cooper says: "Blackstar is a
founding shareholder of York and will remain a significant and valued
shareholder in York with an interest of 10.4% in the ordinary share capital of
the company and will remain fully invested in the preference shares.
Blackstar acquired a controlling stake in York from the controlling Tucker
family in late 2006 with a view to using it as a vehicle to purchase Global
Forest Products (GFP) and has given unstinted backing to York`s management
throughout a period of rapid growth. Lereko Metier through its affiliates became
involved during the period of the GFP acquisition and provided both financial
and advisory support during the acquisition. Cooper views Lereko Metier`s
decision to increase its stake from 4% to 14% as a vote of confidence in the
company and its future prospects.
"The increased BEE ownership from 27% to 39% symbolises York`s drive to be a
leader in transformation in the timber industry," says Cooper.
In a recent empowerment survey conducted by the Financial Mail in conjunction
with Empowerdex, York ranked as the 43rd most empowered company on the JSE
Limited (JSE) and fourth in the Resources Sector. In the survey, JSE companies
were rated by Empowerdex using the Broad Based BEE Codes of Good Practice and
included an assessment of various elements such management control, ownership,
employment equity, skills development, affirmative procurement and
enterprise/social development.
Cooper further comments, "Whilst BEE ownership does constitute the ultimate
element of empowerment, York will not lose sight of the other elements on the
scorecard and will continue to approach empowerment in a balanced fashion."
York is a signatory to the Forestry Charter. A total of 25% of York`s equity is
broad based and comprises rural communities at 16% and employees at 9%.
Ends/
About York
The York Timber Organisation (York) is a forest products enterprise that has
been listed on the JSE Limited since 1946. It is one of the most experienced
and efficient sawmilling companies in South Africa, adding value to wood through
creative applications and strategic focus on niche markets at home and abroad.
The company also successfully markets timber products locally and overseas. The
timber produced by York is manufactured strictly from plantations that are
renewable resources.
In 2007, York acquired Global Forest Products and South African Plywood for R1,7
billion, making it the largest forest products company in South Africa and
boosting its forestry ownership to levels at which more than 65% of the group`s
sawmill log input is internally generated.
York employs 3 700 people and generated R929 million in revenues in 2007.
About Blackstar
Blackstar Investors Plc is an offshore investment company listed on the London
Alternative Investment Market (AIM), which is operated by the London Stock
Exchange, with 80 million pounds sterling raised from foreign institutions for
investment primarily in South African BEE transactions. Blackstar Investors`
shareholders include Fidelity International, Schroders and Merrill Lynch,
amongst others. Blackstar Fund Managers SA (Pty) Limited, headed by Andrew
Bonamour, advises on the funds of Blackstar Investors Plc.
About Lereko Metier Capital Growth Fund
Lereko Metier Capital Growth Fund (Lereko Metier) is a R3.5 billion ($500
million) private equity fund, organised to make investments up to some R750
million ($100 million) in mid cap buyouts and growth capital investment
opportunities in southern Africa.
The Fund`s investment strategy builds on the southern African investment case
which shows attractive growth and development in a relatively mature private
equity investment environment.
The Fund targets control and significant minority equity investment positions to
return above average investment outcomes where its investment hypotheses builds
on the network, experience and the constituency of its principals.
The Fund is today the largest locally funded South African private equity
investment pool, with more than 15 institutional investors, including a
significant investment by its management team.
Significant momentum has already been achieved, with the Fund having made five
investments in telecommunications, food manufacture and distribution, student
accommodation, construction and security automation, and the timber plantation
industry.
The Fund is led by Lulu Gwagwa, Valli Moosa, Popo Molefe, Thierry Dalais, Paul
Botha and Anthony Hewat, complemented by a team of 14 others with a track record
in private equity investment, leadership and skills development of more than 20
years in South Africa.
The fund manager is experienced and organised as an investment capital partner
to management teams and businesses needing ownership change, growth and
development in southern Africa.
SSUED FOR : THE YORK TIMBER ORGANISATION LIMITED (YORK):
013 764 9200
CONTACT : Lance Cooper, CEO: 083 227 4700
FAX NO : 013 764 1164
E-MAIL : Lance@yorkcor.co.za; john@yorkcor.co.za
WEBSITE : www.yorkcor.co.za
ISSUED BY : YORK Corporate and Investor Communications
CONTACT : Tish Stewart 011 442 5536 / 082 443 6399
FAX NO : 011 447 9317
E-MAIL : tishstewart@mweb.co.za
DATE : 17 April 2008
Date: 17/04/2008 12:47:48 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
