Johannesburg - Mathews Phosa, the former premier of Mpumalanga, has secured the lion's share of a R260 million black economic empowerment (BEE) transaction that divides a 26 percent stake in timber and tropical fruit company Hans Merensky (HM) between Vuka Forestry Holdings, Wiphold and staff.
Vuka Holdings will get an 11 percent stake, worth R110 million, women's empowerment group Wiphold gets 9 percent and HM Timber's staff trust, which represents 3 000 staff, gets 6 percent.
Hans Merensky Group chief executive Chris Pienaar described the continued relationship with Vuka as beneficial since they had previously worked together in the acquisition of Vuka Ramanas from Mondi two years ago.
"Vuka has solid knowledge and experience in rural forestry in Eastern Cape and Mpumalanga, both core provinces for HM Timber. And Wiphold brings a significant rural network among communities of the Eastern Cape," said Pienaar.
Wiphold's shares will be shared among 1 200 direct and 18 000 indirect women beneficiaries and 10 non-governmental organisations from the country's nine provinces.
The company said that the transaction would be funded by a combination of cash and share contributions from the empowerment partners and vendor financing.
HM Timber division contributed 50 percent to the group turnover and 60 percent to operating profit.
Phosa, who is no stranger to big BEE transactions, said strong partnerships with established business were key in bringing growth to black-owned companies.
"Right now I am happy with the way white business is implementing BEE policies. Deals like these will gradually bring about change in the country's corporate sector, but we are not there yet," said Phosa.
One of the former politician's forest related business interests includes a stake at the Nelspruit-based equipment supplier, Rudamans, a forest mushroom project.
Wiphold executive director, Gloria Serobe said being part of Hans Merensky would develop rural women who are members of the company.
"HM Timber is an excellent investment for Wiphold, the transaction will support one of our key focus areas of growing business participation associated with the infrastructure industry. We are always involved in finding ways to engage private companies to invest in the empowerment of rural women," said Serobe.
Merensky owns five sawmills around the country and distributes timber-based products to 350 companies in southern Africa and abroad. Last year the company recorded an annual turnover of R1.6 billion.