Heavy equipment manufacturer and distributer,
Bell Equipment, has concluded a Broad Based Black Economic Empowerment
agreement, effective 1 January 2020, that will empower the Group's South
African manufacturing subsidiary, Bell Equipment Company South Africa (BECSA)
and further empower the South African sales and distribution subsidiary, Bell
Equipment Sales South Africa (BESSA).
Commenting on the empowerment transaction, Bell
Equipment Group Chief Executive Officer, Leon Goosen, said that both BECSA and
BESSA will be 51% black owned and aligned with Government's economic transformation
policies. This will improve the BEE scorecards of both entities and position
the Group more competitively in the South African market in addition to a
number of other significant benefits.
"BECSA, as a 51% black owned entity, will
benefit from continued access to Automotive Production and Development
Programme (APDP) funding, the ability to increase manufacturing throughput and
encourage the drive for greater industrialisation. We estimate BECSA to achieve
a Level 3 BBBEE recognition.
"This transformation will also be advantageous
to Bell customers as BESSA will be a 51% blacked owned and 30% black women
owned entity, with an estimated Level 1 BBBEE recognition, allowing our
customers to maximize the benefit of their procurement spend from BESSA. In
addition, an improved BBBEE level, coupled with our local manufacturing, is
aligned with the goals of the 2018 Mining Charter and SANRAL's transformation
goals," explained Goosen.
BESSA became 30% black women owned in April
2017 when shares were sold to BEE shareholders - 22,5% to SIBI Capital (Pty)
Ltd, a 100% Black women owned and managed company, with Sindisiwe Mabaso-Koyana
and Bharti Harie as the ultimate shareholders, and 7,5% to a BBBEE trust, the
Bell Equipment Foundation, which benefits black female beneficiaries. Both Sibi
Capital and the Foundation will also participate in the current empowerment
transaction with a direct shareholding of 7,5% each in BECSA. "Our partnership
with Sibi Capital and the Foundation has proven successful as they are aligned
to our business and we have a solid foundation on which to build a long-term
relationship that can add value to our business," said Goosen.
Black management shareholders
A black management company, comprising current Bell
executives, Avishkar Goordeen, Dominic Chinnappen, Duncan Mashika, Bruce Ndlela
and Niraj Andhee as well as the Bell Foundation will hold an effective 36%
share in BECSA and a 21% share in BESSA.
"The Bell management team making up the BEE management
company are a well-balanced and highly qualified team with years of
institutional knowledge. They bring together the necessary manufacturing
expertise, new business development focus, sales and distribution skills and
are able to continue to spearhead interactions with the private and public
sectors. Provision has also been made through the structure to allow for future
managers to participate," said Goosen.
Restructuring for empowerment
To accommodate the empowerment transaction, it
was necessary to restructure the organisation and Bell Equipment SA Holdings
has been formed as a holding company through which both BECSA and BESSA will be
the group functions, and functions associated with being an original equipment
manufacturer will reside in a new company known as Bell Equipment Group
Services (BEGS), which will be 100% owned by Bell Equipment Limited.
BBBEE transaction reflects our commitment to South Africa and we wish our
partners well in their new roles as we begin a new chapter of the Bell legacy
together. We are excited about the future of our country and believe that our
entities are now optimally positioned to continue to deliver our premium
product range and comprehensive support network for the maximum benefit our
customers," concluded Goosen.
Source: Bell Equipment