Reunert warns of BEE sting

Kimberly Guest
By Kimberly Guest, ITWeb contributor
Johannesburg, 07 Nov 2007

The once-off cost of a R1.1 billion black economic empowerment (BEE) deal is expected to impact negatively on Reunert`s 2007 annual results.

Last year, the company announced it had entered into the deal, which saw 9.5% of the company`s shareholding in black hands. The two-part agreement saw 30% of the empowerment stake being sold to Peotona Group Holdings and 70% of the stake to be held by a broad-based BEE educational trust.

In a statement to shareholders, the company warned it expected basic earnings per share (EPS) to be between 25% and 35% lower than the previous year and headline EPS (HEPS) to come in 40% to 50% down.

Normalised HEPS - which exclude one-off costs - are predicted to be 10% to 20% higher year-on-year.

The company is due to release its annual results for the year ended 30 September on or around 21 November.

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