Many notable second-phase BEE deals, such as those involving Vodacom, Barloworld and Sasol, were struck in 2007/2008. Ten years later, 2018 presented an unwinding opportunity for some of these deals and the introduction of new deal structures. Many deals have been total failures and some have been spectacular successes. The difference appears to have been the detail of how they were financed, who is involved and what variables influence the balance of power. On the financing front, there has been an interesting departure from the classical special-purpose vehicle model, with share-price performance as a main driver of how value is unlocked (if at all) alongside an equity upswing and prohibitive lending terms. An example of this is the Barloworld Khula Sizwe transaction recently announced by the industrials firm. The deal made provision for empowerment partners (black entrepreneurs, workers, the black public and an empowerment foundation) to acquire selected parts of Barloworld’s pr...

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