\u201cRecent statements that BEE deals do not create substantial value are false.\u201d<\/p>\n
That\u2019s the conclusion Intellidex chairman Stuart Theobald has drawn from research released on Thursday which\u201a it is claimed\u201a for the first time puts a number to the value of black economic empowerment transactions.<\/p>\n
\u201cDeals done by the JSE\u2019s 100 largest companies have collectively generated R317-billion of value for beneficiaries\u201a\u201d an Intellidex statement said.<\/p>\n
\u201cWhat was particularly interesting is to see the value that staff and communities have derived\u201a\u201d said Theobald.<\/p>\n
\u201cThe numbers indicate that many poor and working class black South Africans now have access to significant resources because of BEE deals.<\/p>\n
\u201cTo get a sense of the scale of the value\u201a consider that it is 1.8 times the total corporate income tax take in 2014 and is enough to purchase the entire stock of planted agricultural land and machinery in the country.\u201d<\/p>\n
The R317-billion claimed by Intellidex \u201crepresents the net asset value after all debt and other financial obligations are deducted\u201d.<\/p>\n
Just over a third of this – or R108-billion – has been generated by BEE deals \u201cthat have matured and are no longer encumbered by trading restrictions or financial obligations (meaning that beneficiaries are free to use the value as they see fit)\u201d\u201a while the remaining R209-billion comprises \u201cschemes that are still \u2018live\u2019\u201a but are expected to mature within the next few years\u201d.<\/p>\n
The research found that R52bn (16%) of the total is attributable to staff schemes\u201a R196bn (62%) to strategic investment partners and R69bn (22%) to broad-based community schemes. Strategic partners are companies and prominent individuals\u201a but often have broad bases of beneficiaries.<\/p>\n
Intellidex said that 2014 was a boom year \u201cfor maturing deals with almost R60-billion accruing to beneficiaries\u201d\u201a driven largely by huge deals made by FirstRand\u201a Sanlam and Standard Bank.<\/p>\n
The study also highlighted live deals from Exxaro and Naspers that are expected to yield R17-billion and R14-billion respectively when they mature.<\/p>\n
Source: RDM News Wire.<\/p>\n
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