Last year, the exclusion of transport and logistics giant Imperial Holdings from this sector handed top spot to Super Group. Imperial's inclusion this year means it's ranked number one with an overall score of 50,14. Super Group is second.
Imperial concluded some interesting and significant empowerment transactions. It also shone on the employment-equity side. Imperial concluded two empowerment transactions at group level in 2005, which have yet to be surpassed by its peers in the sector. In addition, a number of partnerships and consortia have been formed in various parts of the business.
Its first empowerment deal was with Ukhamba - involving 15 000 of its black employees and a community development trust. In terms of the deal, Ukhamba acquired the rights to 10,1% of Imperial's ordinary shares, in partnership with a community development trust and Imperial itself.
To date, 3,4m deferred ordinary shares have been converted to listed ordinary shares. The fair value of Ukhamba's Imperial ordinary and deferred ordinary shares is R2,1bn, of which black employees are entitled to 47%, and the community development trust 6%.
Then there was the Popo Molefe and Valli Moosa transaction through Lereko Mobility in June 2005. Lereko acquired 7,25% of Imperial for R1,4bn, of which R600m was provided by Imperial. Imperial shareholders provided R458m by subscribing for redeemable debentures in Lereko Mobility. Financial institutions funded the balance.
These deals have grown black voting rights in Imperial to 35% with an economic interest of about 26,8%, according to Empowerdex.
Both Ukhamba and Lereko have appointed two representatives to the Imperial board.
Imperial chairman Lesley Boyd says in the 2006 annual report that a substantial amount of wealth has been created through the holding company's two major BEE transactions. "The growth in value attributable to our black coshareholders in these entities in the financial year (2006) amounted to R259m. The value of shareholders' funds in Ukhamba now stands at R1,9bn, of which 47% accrues to black employees of Imperial and 6% to a development trust."
Imperial says empowerment is a strategic imperative which is managed and co-ordinated at executive board level.
The group spent R71m on employee training and development in 2006. It scored an impressive 10,68 points on its preferential procurement and 15 on enterprise development.
Super Group's empowerment progress has been excellent - notably a well-structured transaction with Peter Malungani's Peu Group, which holds a 25,1% stake in the company. Super Group's employment equity figures are 10% and 27% black representation at senior and middle management levels, respectively.
