Transformation remains a key strategic focus area for the Pioneer Foods Group.
Based on the Broad-based Black Economic Empowerment Codes of Good Practice (BBBEE), we subscribe to the philosophy that a comprehensive BBBEE strategy is an important business imperative to ensure a successful South Africa.
Pioneer is currently ranked as a Level Four BEE Contributor (AQRate Verification Services – February 2013)
- •AQRate Rating 2013 [PDF 739KB]
Transfer in ownership: Phase 1, 2006
Phase 1 took place in 2006, when 18.1 million vote-bearing class “A” ordinary shares were allocated to all Group workers below management level, which translated into employees acquiring 10% of the voting rights in the Group.
The cost to the Group of the 2006 BEE transaction was R163 million (4.4% of the Group’s market capitalisation at the time). The Group supplied the funding with 70% of the dividends from these shares being used to redeem a notional debt. To date the Group has paid out more than R17 million in dividends to the beneficiaries of this scheme.
The Group will use the capital obtained through this second transaction in capital expansion programmes, which will create employment opportunities for the communities in which we operate.
The Pioneer Foods Education and Community Trust
The Pioneer Foods Education and Community Trust is administered as a broad-based ownership scheme for purposes of the BEE Codes. The Trust contributes to school buildings and equipment for public schools and educational institutions that are engaged in public benefit and also provides scholarships, bursaries, awards and loans for study, research and teaching. Black people and in particular, black women, are the major recipients of the Trust.