Insimbi today announces, as part of a broader strategic Black Economic Empowerment (“BBBEE”) and transformation initiative, that the founding shareholders have sold 13 million shares each being a total of 52 million shares equivalent to 20% of the total issued share capital of Insimbi to New Seasons Investment Holdings Proprietary Limited.New Seasons is a well established black owned holding company which specializes in industrial investments in a diverse range of companies.
New Season is a level 1 BEE contributor investment company which has a track record of investing only in exceptional businesses, as reflected in its portfolio of investments.
Highlights of the transaction:
- Together with the recently announced Employee Co and Manco transactions, the New Seasons transaction results in a total BBBEE shareholding in Insimbi, of over 30%
- The founding shareholders have disposed of the 52 million shares at a significant discount of almost 40% to 30 day VWAP in support of their goal and Insimbi’s initiative to achieve an industry leading BBBEE scorecard under the new Act
- Appointment to the Insimbi board as non executive directors of Mr Nelson Mwale and Ms Pamela Mogotlane, the COO and CFO of New Seasons respectively, effective 1st June 2016
Insimbi envisions that all employees will be active participants in the performance of the Company, and will therefore be able to exert a greater influence on their own destinies and on Insimbi’s broader path.
Insimbi entered into agreements in 2016 for the implementation of an employee share participation transaction and a management share participation transaction in terms of which eligible employees of Insimbi will obtain an approximate 8.78% indirect shareholding interest in Insimbi.Together with the New Seasons transaction and Insimbi’s existing spread of shareholding the total black ownership of Insimbi will now be in excess of 30% shareholding. The two companies can capitalize on relationships and synergies that have been cultivated over the years by ensuring that they partner with management teams and partners that share a common vision to demonstrate a positive chemistry in the way they view opportunities.
Frederik Botha, Commercial and Financial Director of Insimbi Refractory and Alloy Supplies commented:
Insimbi is proud to be considered an industry leader in many of the markets we supply. Moving into the future, we intend to expand our business and our leadership profile via diversification, acquisition and organic growth. The Specific Repurchase will facilitate the implementation and intended empowerment objectives.
“Following the resignation of Dr Mahlati from the board, Insimbi welcomes two new additions, Nelson Mwale and Pamela Mogotlane. The two additions bring with them a wealth of experience that will see Insimbi continue to be the leader in the Steel and Alloys industry.”