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Balwin shareholders approve BEE transaction

Aobakwe Reginald Koketso Kukama & Steve Brookes, CEO of Balwin Properties.

Balwin Properties has received shareholders’ approval for the implementation of a significant Black Economic Empowerment (BEE) transaction.

A Special Purpose Vehicle (SPV) owned by black shareholders (the BEE SPV) will subscribe for 47 219 260 newly issued Balwin shares, and the total subscription price will be 455 cents less a 20% discount.

I have been working on a suitable empowerment transacting since listing and Balwin is delighted with the shareholder support received to implement the transaction. Transformation has always been very close to Balwin” commented Steve Brookes, CEO of Balwin Properties.

In addition to the phenomenal work done by the Balwin Foundation, the operational side of Balwin has made considerable effects in transforming our business over the past number of years in support of the principles and objectives of the Black Economic Empowerment Act. This transaction will further improve our BEE scorecard rating”.

The BEE SPV will be controlled by Aobakwe Reginald Koketso Kukama who holds 51% of the shares in the BEE SPV. A black female will hold 24% and black youth will hold the remaining 25%.

The BEE SPV owners will pay R20 million of their capital towards purchasing the newly issued shares, with the balance to be repaid from the proceeds of dividends and own contribution cash top-ups over the next ten years. There is also a lock-in clause of ten years during which the shareholding may not be disposed of or encumbered.

Kukama has vast experience in the property sector with specific focus on project management. Balwin believes that Mr Kukama will be a value adding partner who possesses the functional and technical expertise to complement the existing board’s skillset.

I look forward to working with Mr Kukama. We are committed to creating a business that is truly diverse, representative, and transformed and we firmly believe that this transaction will assist us in achieving our goals,” concludes Brookes.