MGX is selling 5% of subsidiary Metrofile to an employee share trust and another 5% to Sabvest Investments, a company headed by MGX chairman Christopher Seabrooke.
MGX says the stakes will be sold for R5 000 each, as the deals have been priced on the same basis of the recent black empowerment deal with Mineworkers Investment Company.
That deal, announced last month, saw MGX sell 25% of Metrofile for R25 000.
While Metrofile already has a short-term incentive plan to motivate the performance of its management in each financial year, MGX says it has resolved to create a long-term incentive plan for present and future staff of MGX, Metrofile and Metrofile subsidiaries.
The creation of the trust will allow for staff to participate in the Metrofile share incentive scheme.
The group says Seabrooke, Sabvest`s CEO, has been instrumental in ensuring the continued existence of MGX after it became apparent in January last year that the company was unable to service its interest-bearing debt.
"Seabrooke`s contribution to MGX over the last 18 months has been invaluable and his continued leadership is essential for the return to profitability and growth of the company.
"MGX Group`s capital providers and MGX`s two largest shareholders have expressed their support for Seabrooke`s continued involvement with the MGX Group for the five-year period envisaged in the common terms agreement."
The Seabrooke Family Trust has a voting interest of 67% and an economic interest of 32% in the shares of Sabvest.
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