ArcelorMittal SA reveals the terms of its long-awaited empowerment deal
STEEL maker ArcelorMittal SA has announced the terms of its long-awaited empowerment deal, taking another step in mending its relationship with SA’s government.Under the deal, ArcelorMittal SA’s local empowerment partner, Likamva Resources, will take a 17% stake in the company. This will be done via a special purpose vehicle, Amandla We Nsimbi, and through the issue of a new class of notionally funded shares.The deal stipulates that Likamva must "introduce broad-based social and community development organisations" within 24 months. These broad-based participants will take a 5% stake, which will come out of the 17% Ikamva stake.READ THIS: NEWS ANALYSIS: New steel pricing policy caps Arcelor earningsAnother 5.1% stake will go to Amsa employees and management via the ArcelorMittal South Africa Employee Empowerment Share Trust, also through the issue of new shares. This is in addition to the existing Ikageng employee share ownership scheme, which was approved in December.The lock-in pe...
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