Dinatla’s Participation in Bidvest Down to 4,5%

The 2003 BEE transaction which promised Dinatla 15% of Bidvest has been wounded up and has delivered a debt free 4,5% stake in JSE listed Bidvest Group.

This was achieved through Bidvest buying back for R1,6bn a significant portion of the shares issued to Dinatla, a consortium which include Cyril Ramaphosa’s  Shanduka Group and WDB Investments.

Bidvest said in a statement the transaction gives Dinatla constituents the certainty of early cash realisation and facilitates repayment of Dinatla`s funding arrangements well ahead of settlement date in March 2012.

Bidvest chief executive Brian Joffe said “the transaction is hugely  positive for all parties and is further evidence of the tremendous success of our partnership with Dinatla. Wealth mobilisation on this scale has the power to transform entire communities and drive significant change.

“The share repurchase not only unlocks considerable value for Dinatla, it means our partner`s remaining equity in Bidvest is totally unencumbered.

“The structure of our empowerment transaction with Dinatla has demonstrated its resilience across various market cycles and achieved the strategic goals we set in 2003; namely, significant and sustained gains for empowerment beneficiaries while creating a catalyst for change capable of transforming every Bidvest business in the country.”

Speaking on behalf of Dinatla Tania Slabbert said “This unique BEE transaction represents over R2 billion of value realised for Dinatla. The transaction is remarkable for the scale of the value unlocked and in terms of the thousands of beneficiaries that will benefit from it.

“We thank Brian Joffe and his executive team for the many years of commitment to the partnership with Dinatla and for proposing and facilitating this share buy-back transaction which, subject to various approvals, will allow Dinatla to settle its debt early and so allow value to be vested directly in the hands of the constituent BEE beneficiaries.”

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