Business Connexion (BCX) has received shareholder approval for its proposed empowerment transaction.
The company told the market last month that it intended to sell a 30% stake to several empowerment partners in a bid to meet the requirements of the Electronic Communications Act - and the long-awaited ICT charter.
BCX also wants to comply with the Independent Communications of Authority of SA's regulations, which stipulate companies must be 30% black-owned to qualify for licences.
Yesterday, shareholders approved the deal, which will see 30% of the company being sold to executives, management and organisations involved in social and selected women's organisations.
Shareholder approval was the last remaining condition before the deal can be implemented. The resolution will now be filed with the Companies and Intellectual Property Registration Office.
The company is a level three BEE contributor and wants to move to level two by next year. The empowerment deal will aid it in meeting this objective, it says. According to the Department of Trade and Industry's Codes of Good Practice, level one is the highest attainable level.
BCX's empowerment deal will also result in Gadlax, its current empowerment partner, swapping shares in BCX's subsidiary Business Connexion Pty, in which it holds 20.1%, for shares in the listed company.
The company's other empowerment partners include Ditikeni Investment Company, Combined Churches in Action, CIE Investment Company, the Community Outreach Program Trust, Freewheel Trade and Invest, and the YWCA Dube Charitable Trust.
BCX's share closed at 578c yesterday, a 1.05% gain on the day. At that price, a 30% stake would be worth about R450 million. However, BCX has not specified the total value of the deal.
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