A new Broad Based Black Economic Empowerment (BBBEE) trust has seen the light in the form of the Endress+Hauser Ubuntu Trust, now owning 33,3% of Endress+Hauser South Africa. The Ubuntu Trust is comprised of the Endress+Hauser Sisonke Trust (15%), the CIDA Empowerment Fund (10%) and the Endress+Hauser Regenbogen Trust (8,2%).
Following a Price Waterhouse Coopers valuation of Endress+Hauser South Africa, the 33,3% stakeholding was sold at 50% of its true value, financed through Endress+Hauser International Holding Ag in the form of a 10-year, interest free loan. In addition, only 50% of the annual dividend owing to the trust will go towards repayment of the loan, ensuring an immediate flow-through of returns to the beneficiaries. The first dividend is expected to be declared in February 2007.
"We are truly committed to broad based empowerment and would like this to be apparent in every undertaking in which we are involved from here on forward," says Endress+Hauser South Africa managing director, Tony Jacobsen. "Now that we have the equity agreement in place, there is a strong foundation from which to continue rolling out broad based empowerment initiatives in terms of management, skills development, procurement, social responsibility and investment in other BEE developments."
As one of the trust's five current trustees, financial director Marius Jordaan adds that 80% control of the trust lies in the hands of previously disadvantaged individuals, a factor deemed crucial to its future success. This again demonstrates Endress+Hauser's commitment to long term empowerment in South Africa.
"After a long and thorough investigation to find true value-add BEE partners, I do not think we could have asked for a more suitable candidate than CEDA City Campus," says Jordaan. "With the CIDA Empowered Fund and City Campus on board, dividends from this fund will flow through to the beneficiaries of the CIDA Empowerment Fund who are all previously disadvantaged students. The First Lady, Mrs Zanele Mbeki, has been appointed chancellor of this educational institution. This highlights the level of recognition being given to CIDA. It has also recently drawn support from the likes of Oprah Winfrey and Richard Branson, which bodes well for future exposure and growth of this inspiring initiative, conceived and driven by CEO, Taddy Bleecher."
CIDA City Campus has business administration qualifications as its core focus, allowing students to specialise in a variety of fields that range from ICT to marketing and financial disciplines.
In turn, the Endress+Hauser Sisonke Trust represents the interests of previously disadvantaged Endress+Hauser employees, while the Endress+Hauser Regenbogen Trust (German reference to the Rainbow Nation brings the company's white staff members into the agreement.
Endress+Hauser has been actively involved in various empowerment initiatives to date, ranging from its support of the Tshwane South College of Further Education with the set up of the Dr George Endress Instrumentation Facility to involvement with the Cotlands and MC Weiler Primary School in Alexandra, Johannesburg.
For more information contact Tony Jacobsen, Endress+Hauser, 011 262 8000, [email protected], www.endress.co.za
| Tel: | +27 11 262 8000 |
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