Redefine Empowerment Trust approved by shareholders

Andrew Konig, Redefine CEO

Shareholders of Redefine Properties, one of the country’s largest listed property companies, have approved the establishment of an Empowerment Trust – a move that will materially bolster its BBBEE credentials. Shares to be issued to the Trust will hold an equity value of approximately R3 billion.

At a general shareholders meeting held in Johannesburg today, Redefine shareholders voted in favour of issuing up to 300 million shares to the newly established Trust, funded by a loan advanced by the company.

“We are delighted with the outcome of today’s vote. The overwhelming support of our shareholders to create this Trust reaffirms our group’s commitment to sustainable empowerment,” says Andrew Konig, Redefine CEO. “This is an important milestone for the company and a significant step towards achieving our BBBEE objectives.”

“Our approach to transformation is to create sustainable, robust, credible and broad-based benefit and value, and we believe that this transaction will generate long term value for all stakeholders.”

The Trust, which is structured as a capital preserving Trust will continue in perpetuity and its principle focus is on activities to improve education and training at all levels; through the provision of scholarships and bursaries and community development programmes. Beneficiaries include pre-school children, school children, students at tertiary institutions, black entrepreneurs, community upliftment programmes and poverty alleviation organisations.

“We have been very clear about the tangible social impacts we want to make with this Trust. We believe that by empowering South Africans at all levels through education, we can go a long way towards overcoming the barriers to transformation and at the same time, create the kind of skills that the country really needs. Beneficiaries have therefore been carefully categorised according to four classes to ensure the appropriate allocation of funds,” said Konig.

The Trust will operate independently and will be managed by external independent Trustees. All beneficiaries must be black South Africans, of whom at least 50% should be female, according to the scheme’s terms.

The transaction was developed and structured in accordance with the DTI’s Code of Good Practise and the Property Sector Charter Codes.