Invicta to start BEE talks soon
Siseko Njobeni
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Trade and Industry Correspondent
INVESTMENT holdings group Invicta intended to start negotiations with potential black economic empowerment partners by the end of next month, financial director Craig Barnard said yesterday.
Invicta announced earlier this year that it would buy out minorities and acquire full ownership of subsidiary Bearing Man, the bearings and industrial equipment distributor. Invicta owns 60,65% of Bearing Man.
This week, Invicta said it had decided to restructure ahead of a possible sale of a 25% stake to an empowerment company.
Barnard said yesterday that the company had not yet started negotiations with potential empowerment partners, but that discussions would begin by the end of next month.
He said Invicta would have completed its restructuring by then. ôIt is our aim to do the deal after the restructuring process,ö he said.
Announcing its results for the year to March, Invicta said the empowerment deal would include a staff empowerment scheme.
Invicta said it was buying out minorities to realise economies of scale and to eliminate duplication of costs.
The company also said that the current structure, which includes minority shareholders in Bearing Man, was inefficient. ôThe Invicta board is of the opinion that the restructuring and subsequent empowerment of the Invicta group is key to ensuring the continued sustainability of the group and stimulating the future growth of its business operations in SA.ö
The impending restructuring and sale of a stake to a black economic empowerment group is subject to shareholder approval. Shareholders are scheduled to meet later this month.
The Invicta board has urged its shareholders to vote in favour of the proposed changes.
The board believes that the transactions would ôenhance shareholder valueö.
Invicta has offered Bearing Man shareholders R7,50 a share, or a share swap of one Invicta share for every 2,5 Bearing Man shares. Bearing Man shareholders could also choose a combination of the cash and share swap options.
Invicta directors, who collectively directly or indirectly hold 60,59% of Invicta shares, have said they would vote in favour of the transactions.
InvictaÆs share price was unchanged ù at R16,75 ù at the JSE close yesterday.
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