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| Lafarge announces a Black Empowerment deal for €120 million Lafarge, the world leader in building materials, announces a R1.1 billion (€120 million) Broad-Based Black Economic Empowerment (BEE) deal, in line with the South African Government's policy to transform the country, redress past racial inequalities and broaden the country's economic base. A "broad-based enterprise" has an empowerment shareholder who represents a broad base of members such as a local community or where the benefits support a target group, for example, black women, people living with disabilities, the youth and workers. Shares are held via direct equity, non-profit organizations and trusts. Under the agreement, Lafarge will sell 26% of its mining (Aggregates, Limestone and Gypsum quarries) and 10% of its manufacturing (Cement, Ready-Mix Concrete and Gypsum) activities in South Africa. An empowerment consortium will hold 75% of the stake and Lafarge's Historically Disadvantaged South African (HDSA) employees 25% in an Employee Share Ownership Trust. The consortium will be led by two joint lead partners (Peotona Group Holdings, an investment company wholly owned by women, and Motjoli Resources, an entirely black-owned mining company with 40% of female shareholders) with 40% of the shares. An Education Trust and communities close to Lafarge's quarries will hold respectively 53% and 7% of its shares. write your comments about the article :: © 2006 Construction News :: home page |