Listed outsourcing company Business Connexion (BCX) is negotiating a broad-based black economic empowerment deal.
Business Connexion says the pending deal will result in its empowerment structure changing. Its current empowerment partner is Gadlex, which has a 20.1% stake in the company.
The deal will involve introducing more broad-based empowerment partners at listed company level, BCX explained in a Stock Exchange News Service announcement issued yesterday.
No other details about the deal were provided.
BCX has cautioned shareholders that the transaction, if implemented, could have a material effect on its share price.
The outsourcing company's share was flat yesterday and closed at R5.55c.
In January, BCX said it had moved from being a level four BEE contributor to a level three BEE contributor, a year early.
signing more deals with empowerment companies by year-end, she added.
Last year, during the company's results presentation, Olver said BCX may review its ownership structure to give it a better empowerment profile. She explained this stake may change as BCX seeks to acquire more empowerment partners.
A level three position gives the company an empowerment recognition level of 110%, compared to level four, which is 100% and seen as being fully compliant with empowerment legislation, according to the Department of Trade and Industry's Codes of Good Practice.
The highest level that can be attained is level one, which is a BEE recognition level of 135%.
Related story:
BCX beats empowerment target
Share
