Pioneer Foods is committed to transformation and the revised Broad-based Black Economic Empowerment Codes of Good Practice (B-BBEE), that came into effect in 1 October 2015. We believe that a comprehensive BBBEE strategy is an important business imperative, and these codes have provided us with a strategic foundation on which to build.
Pioneer Foods has improved its status to a Level Three BEE Contributor, based on third party verification. For more detail on this, please download our BEE Certificate
Transfer in ownership: Phase 1, 2006
Phase 1 took place in 2006 when 18.1 million vote-bearing Class “A” standard shares were allocated to all Group workers below management level. This 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.
Phase 2, 2012
Phase 2 was conducted in 2012 the Company issued a total number 28.6 million shares (with a Net Asset Value of just over R2 billion) to special purpose vehicles (SPV). These SPV’s are detailed below:
- Strategic BEE partners through Special Purpose Vehicle’s (SPV’s) at a subscription price of R55.14
- Current and former black Directors Special Purpose Vehicle’s (SPV’s) at a subscription price of R58.04
- Pioneer Foods Broad-Based BEE Trust (“BEE Trust”) at a subscription price of R0.10c