EOH is finalising a deal to include staff members in a black economic empowerment (BEE) transaction involving a 25% equity stake.
It was known for some time that EOH had earmarked a stake of 25% plus one share for a BEE initiative.
However, it said in April that although it had been in talks with "a number of people", it had decided to allocate the stake to qualifying employees.
In a cautionary notice issued this morning, EOH says it believes that involving the employees in the empowerment deal is the most effective way to achieve broad-based empowerment.
"This will be accomplished through the creation of a BEE employee trust and an investment into the company by an empowerment fund."
New EOH shares are to be issued to the trust, which will previously disadvantaged employees, both current and future, as beneficiaries.
"The empowerment fund will be issued new EOH shares for cash resulting in a combined shareholding of the BEE employee trust and the empowerment fund in excess of 25% of EOH," the group says.
It adds that it will disclose further details later, and has advised its shareholders to exercise caution when dealing in their shares until then.
The EOH share was trading at 295c this morning, unchanged from Friday`s close.
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