Shareholders in insurance broking and financial services group Glenrand M.I.B Limited have approved a strategic black economic empowerment (BEE) transaction, increasing BEE shareholding in the group from 6,0% to 27,7%.
In a general meeting of shareholders held on Friday, 17 March 2006, approval was given to the transaction that introduces two new broad-based BEE groups - Ayavuna Women's Investments and Matemeku Investments - and increases the shareholding of Glenrand M.I.Bs long-standing BEE partner, Kunene Brothers. In three separate transactions worth R103 million in total, each of the three empowerment groups will acquire 5,8% of the ordinary equity in Glenrand M.I.B.
In a scheme meeting of shareholders held on Friday, 17 March 2006, the requisite majority votes was obtained to implement a Scheme of Arrangement. Through the Scheme of Arrangement, a wholly-owned subsidiary of Glenrand M.I.B will purchase 6,7% of the issued share capital of Glenrand M.I.B and the Glenmib Employee Empowerment Trust will acquire 4,3% . The Scheme of Arrangement will enable the company to mitigate the dilutory effect of issuing the new subscription and capitalisation shares to the BEE partners.
High Court approval for the Scheme of Arrangement is pending.
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