Reunert is talking of doing a deal. Well they have done a deal that is subject to shareholder approval. But if they are making as big a deal about it, then they must be sure it is going to go through. The 10% stake is estimated to be worth R1.1billion. 70% of the beneficiaries will be "students from previously disadvantaged communities who will get training in mathematics and science."
That's the nice, warm and fuzzy part of the deal. The remain 30% goes to a new company called Retona, a SPV set up for the occasion. Retona's shareholders are (wait for it), Dolly Mokgatle, Cheryl Carolus, Thandi Orleyn and Wendy Lucas-Bull - the head honchos of Peotona Group Holdings (Pty) Limited (Google them and see how many deals they've done in the last couple of years). Boel Pretorius, CEO of Reunert defended his choice of partners (described as the usual faces) saying they had "chosen these women because it had faith in their ability to add value in the group."
And the structure of the deal.
- A ten to eleven year lock-in clause, this after rumours that the codes will not look favourably on deals that lock investors in for longer than five years.
- The deal is split between the four in this way:
- Mokgatle (8.40%) amounting to R 92,400,000.00
- Orleyn (8.40%) amounting to R 92,400,000.00
- Carolus (8.70%) amounting to R 95,700,000.00
- Lucas-Bull (4.50%) amounting to R 49,500,000.00
Poor old Wendy - she seems to have drawn the shortest stick here. And this is a significant point - whilst the shareholders remain black then the deal works for Reunert, so they must be tied in. All the best press in the world will never detract from that fact. By the way - don't get too bogged down on the amount of money these people will earn - it is subject to the loan being paid off (otherwise they will be in a fair amount of trouble).
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