The globally active Endress+Hauser Group, specialising in measuring technology and automation solutions for industrial process engineering has decided to sell shares of its South African subsidiary in a move to align the company with the South African business environment.
The Supervisory Board of Endress+Hauser (International) Holding AG, Switzerland has passed a resolution that will see up to 33,3% of Endress+Hauser, Sandton, Johannesburg being sold to a broad-based black economic empowerment (BBBEE) Consortium Trust. A timetable and auditable process is in place to ensure that the deal is concluded and the structure in place by 1 January 2006.
Although this equity element is a critically important factor in the BBBEE process, Endress+Hauser is also decidedly addressing and pursuing maximum points on the six remaining elements of the generic BBBEE scorecard. "Endress+Hauser and all its associates share in this vision, maintaining that the BBBEE process will form one of the cornerstones towards developing a sustainable future for all in South Africa," states Tony Jacobsen, managing director of Endress+Hauser.
Through the creation of a trust, which will be largely made up of the company's employees, Endress+Hauser intends to ensure long-term investment and economic interest (wealth creation) for the beneficiaries of the trust. The financing structure will be self-sufficient and the economic benefit should be realised within a year of its establishment.
The trust will ideally comprise of three entities, namely a PDI (previously disadvantaged individuals) Trust, a BEE Third Party, as well as a White Employee Trust, thus incorporating the entire team. The beneficiaries will consist of at least 75% PDIs of which at least 50% will be black women. Shares will be allocated according to length of service - no other criteria will be considered - and will increase in time with each individual's term.
The transformation transaction will be designed to make both business and investment sense, mutually benefiting existing and new participating shareholders, stakeholders and employees. Shares sold to the trust will remain in the trust - protecting the new beneficiaries and ensuring that the company's BEE compliance is not compromised.
To this end, the beneficiaries of the new trust will be tasked with independently electing four representatives. At least one of these trustees will be rotated on a regular basis. In addition, one trustee will be selected by the beneficiaries to sit on the board during his/her term. This system will serve as a vehicle through which trustees will be awarded the opportunity to gain new business skills and knowledge, by being exposed to the company's operations at board level. The support and guidance of Endress+Hauser's most senior members of staff will ensure that a valuable exchange of skills takes place.
The company's transformation is being seen as process over time rather than a single event. Regarding the other elements of the BBBEE scorecard, ie, management, skills development, employment equity, procurement, social responsibility, investment in other BEE development, Endress+Hauser has already embarked on several initiatives.
In terms of employment equity, 46% of Endress+Hauser's staff complement is currently comprised of previously disadvantaged individuals and women. In addition, the company has earmarked skills development and training and HIV/AIDS as its two key areas of responsibility.
Endress+Hauser's partnership with Tshwane South College began approximately three years ago, in order to enhance the level of know-how to previously disadvantaged learners, in the field of process automation. This venture has been a major success story and to date, over R1 million has been contributed in instruments and infrastructure. To make sure that the latest technology and equipment is always made available to the learners, Endress+Hauser has committed to supporting Tshwane South College on a long-term basis.
Endress+Hauser recently donated five computers valued at R20 000 to M.C. Weiler primary school in Alexandra Township, trained the teachers in computer literacy and refurbished the school library. The company has pledged its support to M.C. Weiler on an annual basis - these funds will go towards needs specifically identified by the schools' governing body and teachers.
Last year, Endress+Hauser marked its 20 year anniversary in South Africa with the opening of its expanded and upgraded premises in Sandton, Johannesburg, which include a new training facility for up to 120 delegates - further augmenting the company's commitment to training and development.
The company also contributes annually to Cotlands Children's Home, a non-profit organisation that offers sanctuary to orphaned or abandoned children, particularly those living with HIV/AIDS. "We intend to continue our work with Cotlands, recognising that it is only through secure partnerships that the home is able to commit to meaningful or sustainable projects and services," Jacobsen explains.
"The process of BBBEE has been a first-ever for the Endress+Hauser Group. This equity deal bears testimony to the Endress family's dedication to their South African operation and to the journey of transformation which is intrinsic to our success as a nation," Jacobsen concludes.
For more information contact Tony Jacobsen, Endress+Hauser, 011 262 8000, [email protected]
| Tel: | +27 11 262 8000 |
| Email: | [email protected] |
| www: | www.endress.com |
| Articles: | More information and articles about Endress+Hauser South Africa |
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