Morvest directors get richer through BEE

Directors of JSE listed human capital specialist and ICT solutions group, Morvest, are getting richer due to departure of a fellow director, N Singh, who had to offload a claim to about 8.6 million Morvest ordinary shares.

While directors, including ANC heavyweight Popo Molefe, and senior management feed at the back of BEE, observers will ask: where is an initiative that will benefit the rest of the Morvest people (2000 or so staff members)?  This is critical for a group that oversells itself as a truly empowered entity. In its website the group describes itself as follows: “Morvest acknowledges the process of BEE as an integral driver of economic and social transformation in South Africa. Achieving BEE targets forms part of Morvests core values and is a strategic and operational imperative. In 2010 the group advanced to Level 2 following implementation of the BEE Scheme”.

The company announced yesterday that after resigning, on June 17, as an executive director, N Singh who held 754 868 ordinary shares in Morvest’s BEECO representing 7.55% shareholding in BEECO and indirectly 8 662 110 Morvest shares, offloaded these shares. They were now being distributed on a pro rata basis across other beneficiaries of BEECO who are made of Morvest key executive directors, non-executives and key members of management.

These shares were earned in 2010 when Morvest concluded its BEE transaction. The transaction gave directors and management about 114.7 million Morvest shares representing 16.8% of total Morvest ordinary shares.

“In terms of the BEECO transaction, N Singh’s BEECO ordinary shares have been repurchased by BEECO (“BEECO share repurchase”) resulting in the pro rata interest of the remaining shareholders in BEECO being increased and consequently that their effective pro rata interest in Morvest shares being increased”.

The beneficiaries include:  Popo Molefe, Mohammed Varachia, Surendranath Singh,  Madoda Papiyana, Alex Evan, Ntombizodwa Yvonne Mhinga.

The pro rata redistribution was as follows:

Name of director        MS Varachia

Designation:            Executive Director

Date of allocation:     3 September 2012

Nature of security:     Ordinary shares

Number of Morvest       5 826 825

shares allocated:

Nature of

transaction              Acquisition -off market

allocation

 

 

Price:                  21 cents

(Indicative   market

value)

Value of                R1 223 633.29

transaction:

Nature of interest:     Indirect beneficial

interest via BEECo

 

Name of director        S Singh

Designation:            Executive

Date of allocation:     3 September 2012

Nature of security:     Ordinary shares

Number of Morvest

shares allocated:       1 042 384

Nature of

transaction             Acquisition -off market

allocation

Price:                  21 cents

(Indicative   market

value)

Value of                 R218 900.67

transaction:

Nature of interest:      Indirect beneficial

interest via BEECo

 

Name of director         M Papiyana

Designation:             Executive

Date of allocation:      3 September 2012

Nature of security:      Ordinary shares

Number of Morvest        271 019

shares allocated:

Nature of                Acquisition -off market

transaction              allocation

Price:                   21 cents

(Indicative   market

value)

Value of                 R56 914.09

transaction:

Nature of interest:      Indirect beneficial

interest via BEECo

 

Name of director         A Evan

Designation:             Executive

Date of allocation:      3 September 2012

Nature of security:      Ordinary shares

Number of Morvest        687 973

shares allocated:

Nature of                Acquisition -off market

transaction              allocation

Price:                   21 cents

(Indicative   market

value)

Value of                 R144 474.43

transaction:

Nature of interest:      Indirect beneficial

interest via BEECo

 

Company Secretary         N January

Date of allocation:      3 September 2012

Nature of security:      ordinary shares

Number of Morvest        208 477

shares allocated:

Nature of                Acquisition -off market

transaction:             allocation

Price:                   21 cents

(Indicative   market

value)

Value of                 R43 780.17

transaction:

Nature of interest:      Indirect beneficial

interest via BEECo

 

 

 

Name of Associate        KJ Molefe

Designation:             Spouse of P Molefe- Non

Executive Director

Date of allocation:      3 September 2012

Nature of security:      Ordinary shares

Number of Morvest        416 954

shares allocated:

Nature of                Acquisition -off market

transaction              allocation

Price:                   21 cents

(Indicative   market

value)

Value of                 R87 560.35

transaction:

Nature of interest:      Indirect beneficial

interest via BEECo

 

Name of director         NY Mhinga

Designation:             Non- executive

Date of allocation:      3 November 2012

Nature of security:      Ordinary shares

Number of Morvest        208 477

shares allocated:

Nature of                Acquisition -off market

transaction              allocation

Price:                   21 cents

(Indicative   market

value)

Value of                 R43 780.17

transaction:

Nature of interest:      Indirect beneficial

interest via BEECo

 

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